Breaking Myths About Non-Compete Clauses in California

MARIN, CA – An insurance brokerage, Woodruff-Sawyer & Co., is suing a former employee after the employee resigned. Plaintiff alleges that the employee started competing with plaintiff in violation of a buy-sell agreement that prohibits competition.

There are a lot of misconceptions floating around about the enforce-ability of non-compete clauses in California. In general, non-compete clauses are not enforceable but there are exceptions, including where owners and/or part owners sell their interest. The exceptions are spelled out in Business and Professions Code sections 1600 et seq. and include the sale of partnership interests, LLC member interests and other ownership forms.

Interestingly, in the case at hand, no trade secret or other violations are alleged – just the non-compete.

This blog reports on cases filed in and around the San Francisco Bay Area. The statements made are based on the allegations in court-filed documents. Allegations are just accusations, and may or may not be true.
The authors of the blog are attorneys at the San Francisco litigation firm, Wood Robbins, LLP. If you have a legal issue, send them an email. If they cannot help you, they will try and point you in the right direction.


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