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Experience with a No Compete Clause?

Has anyone had any experience where they violated a company "no compete" clause and got caught?

What were the actions taken by the company and what was the final outcome?

3 Answers

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  • michr
    Lv 7
    1 decade ago
    Favorite Answer

    first lets clarify California is NOT a "right-to-work" state (it is an "at-will" employment state), and right-to-work or at-will has NOTHING to do with this issue.

    non-competes are NOT enforceable in any state if they are NOT strictly construed, they must be limited in geographic area, length (months NOT years) and be justified due to trade-secerets, proprietary rights, etcetera.

    a non-compete can NOT limit a persons ability to make a living in their career field.

    the ramifications of violation must be clearly stated and enforceable under public policy.....

    a common mis-conception about non-competes involves those in sales, a sales person stealing a customer list has nothing to do with non-competes but is rather a criminal offense (theft of company assets) and depending on the circumstances could be criminally or civilly prosecuted...

    in a few states non-competes are simply NOT legal.

    so what would happen in your case depends on where you are, how the agreement is worded.........

    generally these are nothing more then scare tactics......

  • 1 decade ago

    It depends on the state in which you live. California, like many states, is a right-to-work state, and non-compete restrictions in employment agreements are against public policy and usually will not be enforced by the courts. Agreements dealing with businesses are a different matter, and there may be some enforceability there.

  • Anonymous
    1 decade ago

    The actions are usually set forth in the non-compete agreement

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