California Employment Contracts Legal Questions

If you lived anywhere else in the US, I would ask you "what does your contract say?"  However, California Business and Professions Code section 16600 et seq prohibits non-compete covenants except under unusual circumstances which don't seem to apply here.  In fact, it can be considered an unfair labor practice for an employer to try to enforce a non-compete covenant against a California employee.... Read More

Not sure what you mean by "legal" - in all other states it's not illegal to have this common clause in a contract, although depending on the circumstances it may not be enforceable.  In California, however, the clause appears to violate Business and Professions Code Section 16600 et seq. and therefore be unenforceable.  It may even be an unfair business practice under Califonia law to try to compel you to sign it and/or to try to enforce it.   By the way, I don't see this as an NDA; there is no prohibition against disclosure.  It seems to be a pure covenant not to compete.... Read More

Hi Sandra, You can certainly file a lawsuit seeking an order that your former employee return the documents that he has. I would recommend that you first have an attorney send the former employee a demand letter with a strict deadline to comply and that you follow up with the lawsuit if the documents aren't timely returned. If you are forced to file a lawsuit it is likely that you could obtain an order fairly quickly requiring the employee to return the paperwork. Thanks,Jon... Read More

The pros are that you get money immediately.  The cons are that you waive all claims you may have had.  The only way you can bring any claims later is if you can somehow have the severance agreement invalidated, for example if you can prove that you were defrauded into signing it.  This is very unlikely.  You can try to negotiate a severance agreement which doesn't release any claims, or releases only certain categories of claims (not including gender discrimination, but I doubt very much your employer would agree to it.  You have to decide whether the value of your claim is more than the severance package you're being offered, taking into account how likely you are to win, how much you are likely to get at the end, how long it is likely to take, the attorneys' fees and other expenses you will incur if you sue, the likelihood that your employer will be able to pay any judgment you receive in the future, etc.  It may be worth your while to get some professional advice on these issues.... Read More

You probably have no recourse for losing the job.  Absent a contract which limits the employer's right to fire you (e.e.g. "employee can only be terminated for good cause"), or being fired for some reason prohibited by statute (e.g. race, religion, gender), your employer can fire you at any time and for any reason. However, you may have a good claim for slander.  While you probably sustained no actual damage from the employer telling your friend that you had track marks, this type of defamation may be considered "slander per se", which means that you would not have to prove actual damages to state a claim.... Read More

If the email was a work account there is a good argument that they are entitled to it. Non-competes are not illegal, but in many cases courts have restricted them because they have been found to be overbroad or inhibited an individual's ability to work. If there is a significant amount of money at issue and you have already been sued I would highly recommend that you consult an attorney. The legal system is very difficult to navigate if you don't understand all of the procedural rules and you are held to the same standards as if you were an attorney. Good luck! Jon... Read More

Under California law (Business and Professions Code Section 16600 et seq), agreements which restrict a person's right to work in an industry are unenforceable except under limited circumstances, which don't appear to be present in your case.  In fact, it can be considered an unfair trade practice for a firm to try and enforce such a restrictive covenant in court.  You need to get advice from a California attorney and tell him/her all of the relevant circumstances, but I think it very likely that the non-compete is unenforceable. ... Read More

It sounds to me like you may have a labor claim against your former employer because they have improperly categorized you as an independent contractor. Their potential liability could be much greater than the $550 that they deducted from your paycheck for the job you referenced in your post. Regarding the fraudulent mold tests you might want to check with the Department of Consumer Affairs to see if they will have any interest in investigating. Jon... Read More

Your former employer cna disclose that you were terminated, however most employers are very careful of what they discloser for fear of being sued.  Many employers have a policy that they will only confirm the dates that someone worked for them, and  no other information.  If your former employer makes a false statement of fact (not an opinion) about you, and that false statement damages you, it may be liable to you for those damages.... Read More

Assuming that you did not sell this business, and there are no problems with the disclosure of trade secrets, and no reason why some other state's law should apply rather than California's, no.  California has by far the strictest policy in the nation against non-compete agreements.  In fact, it can be considered an unfair labor practice under California law for an employer to try to enforce a non-compete agreement.  Take a look at California Business and Professions Code Section 16600, 16601, and 16602.... Read More

Do you have an employment contract (could be contained in an employee manual) which either states a fixed duration for your employment (i.e. employee will be employed for 2 years) or limits the grounds for which you can be terminated (i.e. employee can only be terminated for good cause)?  Do you believe that you were fired for some reason prohibited by statute (i.e. for your race, religion, gender, etc.)?  Absent one of these circumstances, you can be fired at any time, for any reason.... Read More

My first reaction to your question is that the non-compete would probably hold up in Court.  In most states, restrictive covenants in the employment context are enforceable to the extent that they are reasonable and necessary to protect the employer's legitimate business interest.  Keeping a short order cook from working for any competitor within 50 miles for ten years is not reasonable, and not enforceable.  However, in my opinion your employer does have a legitimate intererest in preventing you from cutting them out and working for their customer directly. Then I saw that you were from California.  California law prohibits such restrictive covenants except in very limited circumstances, which do not seem to apply here.  See California Business and Professionals Code Section 16600 et seq.  Indeed, a former employer who tries to enforce a restrictive covenant against a former California employee can be deemed to have committed an unfair trade practice, and be subject to serious liability.  Under California law, if you are not an equity owner or former equity owner of the employer (e.g. partner, shareholder, member of an llc, etc.) and do not use any of your former employer's trade secrets or proprietary information in your new job, the restrictive covenant probably can't be enforced against you.  I caution you, however, that this is a serious situation, and you would be wise to consult with a California attorney before  you accept the new job. ... Read More

Non compete clauses are enforceable as long as they are reasonable in time and geographic location and do not unnecessarily hinder commerce and do not violate public policy.  The terms you have stated, three years would most likely be found reasonable by a court of law.   However, the terms regarding not being able to compete in ANY geographic location sounds dubious.  I would need to read the contract to determine if the terms of the agreement would hold up in court.  Is this what the agreement actually says "any where"?  I invite you to contact me.  The bottom line is:  if the terms of the agreement are found reasonable you will loose in court.  The ramifications of loosing in a suit like this can be very expensive.  They could make you return all profits you made from your business and possibly charge you alot of money if they show you  damaged there business. On the other hand if the terms of the agreement are NOT reasonable, the other company will not be able to enforce that term against you.  Instead the court will find a reasonable term to replace instead.  Usually geographic limitations in such type of business are upheld in court if the are specific and certain.  This also depends on the industry and the specific circumstances of the particular case.  You should consult an attorney.  This could get real bad real quick.  You should have an attorney help you in this matter.   If you like, contact me with more detail so I can give you a more specific answer. dadalaw@comcast.net Codi M. Dada, Attorney at Law Novato Ca. 94945 415-827-1425... Read More

Best resolution is to contact the labor board.  THis is a government agency who helps people resolve issues such as theone you have described above.  Search the web the labor board and follow the instructions on the web site.  This does not cost you anything. If you need help filling out the proper forms my company charges $195.00.  However, these forms are simply and can be easily completed by yourself.... Read More