More details to this question:
I am starting a videography business with a friend and he proposed a "non-compete" agreement. He proposed that we can't do any video work for money unless it goes through the company. We also wouldn't be able to do any work for people for free. I also help a friend with making videos for his entertainment blog. He is saying that I won't be able to make those videos anymore because of the agreement. Is any part of these actually legal considering the entertainment news site is not in direct competition and offers none of the same services as we do?
1 ANSWER
I don't see anything illegal about any of it. In an employer/employee situation, there are limits on non-competes that extend after employment, but this is neither an employer/employee situation nor does the restriction continue after your involvement with the business (nor, unless there are facts you haven't disclosed, does California law apply; California has rules in this area which are different from anywhere else in the U.S., and the answer might be different under Cal. law). It is not uncommon for the principals of a business to mutually agree that they will devote all of their working time and energy to the business, and this is similar. You're perfectly free not to agree to these restrictions, but if you do agree, I believe they would be enforceable.
Answered on May 06th, 2014 at 5:00 PM