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View Full Version : CA laws on employees starting their own company?



Vivid Color Zack
02-25-2010, 07:28 PM
I have a friend who may be breaking off from his or her company to start their own business doing the same exact thing... I know there was some kind of noncompete agreement in the beginning but the contract said "for two years from contract signature date" and that time ended around a year ago.

What should they be worried about (if anything) when starting this business? They will more than likely be converting/stealing customers from their current employer.

Thoughts? Worries?

Business Attorney
02-26-2010, 02:26 AM
The basic rule in California is that non-competes are not enforceable against employees.

There still may be problems, for example, if the former employee is using confidential information or trade secrets or if he is breaching some other duty he owes to his employer.

He should probably have a short conversation with a lawyer and explain all the facts, just to be safe.