Orange County employment lawyer

Non-Competition Agreements

It has been a common practice for some employers to have their new hires sign “non-competition” agreements. The purpose of the documents is to limit the employee’s rights to solicit former clients or work for a competitor after leaving the company. A ruling handed down recently by the California Supreme Court strengthened the law that employers cannot use such binding contracts.

Wrongful termination

If an employer fires a current employee or fails to hire a prospective employee because he or she refuses to sign a non-competition agreement, they can be sued for wrongful termination. Under this type of suit, the employee can recover damages for the termination and possibly even lost wages for the time that he or she was unemployed and seeking new work.

Your rights

The law gives employees more liberty after leaving a company. You as an employee are protected and free to seek employment or business from whomever you choose. Likewise, other businesses no longer have to worry about facing a lawsuit if they hire a competitor’s former employee. If an employer asks or requires you to sign a non-competition agreement, they are breaking the law, as well as violating your rights. Even contracts that only obligate you not to contact previous clients after leaving a firm, but do not forbid you from working for competitors are illegal.

If you have received adverse consequences, such as being terminated, for not signing a non-competition agreement, you are entitled to take legal action against your employer. contact Orange County employment lawyer Perry Smith at 888.356.2529 to discuss your case and further legal options.