Non-Compete Agreements: What to Consider

Non-Compete Agreements: What to Consider

Millions of businesses around the country, including some right here in the Rocklin and Sacramento areas, use non-compete agreements. While they do this with good intentions for helping their businesses, they may not turn out to do much. The more you know about non-compete agreements the more you can make sure that you are taking the correct steps to indeed protect your business. There are a variety of reasons that a business would choose to have its employees sign a non-compete agreement. Most of them are simply afraid that employees will learn all they can at the business and leave to go start their own company or go work for their competitor. These are legitimate business concerns, but they may not be remedied simply because there is a signed non-compete agreement. There are a lot of things to consider about non-compete agreements, including:

  • The laws regarding non-compete agreements vary by state. Therefore if someone signs a non-compete agreement in one state, it may not enforceable in another.
  • In the state of California you may have a difficult time being able to enforce a non-compete agreement if you have employees sign it. The laws in California do not favor non-compete agreements. Rather, they are more likely to rule on the side of open competition if the case is taken up in the courts.

Whether you are a business that is considering using a non-compete agreement, or you are a person who has signed one and wants out, there are solutions. There are ways that businesses can protect their trade secrets so that the people you hire don’t run out the door and begin selling them online or down the block. Before attempting to use any kind of non-compete agreement or contract with your employees it is always best to first check with an attorney. Working with an attorney you will help ensure that you are not breaking any laws as you try to protect your business. Most people understand why businesses wan to use a non-compete agreement. But that doesn’t mean that it is going to be legal, or enforceable when it comes down to it. Businesses in the Rocklin and Sacramento areas, as well as throughout California, should always consult an attorney before requiring employees to sign any type of agreements and contracts. It’s better to make sure that what they are signing is legal so that there are no problems later on.


The Law Offices of Terry L. Gilbeau provides personalized counsel to clients in a variety of business and personal matters, including creditors’ rights, debt collection, products liability and international transaction issues. His office is located in Rocklin, CA, just outside of Sacramento, CA, near Roseville, Lincoln, Auburn, in Placer County and can be reached at (916-626-5539) or email Terry at Click here for the firm website

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