QUESTION
I am being asked to sign an agreement by my employer in which I do not agree with below clause.Is this a legal clause to have in a company NDA?
Asked on Jul 24th, 2014 on Employment Contracts - California
More details to this question:
2.2 Employee agrees that during the term of Employee's employment with the Company and for a period of twelve (12) months after the cessation of Employee's employment, Employee will not, either directly or indirectly, or for himself/herself or through, on behalf of, or in conjunction with any person, persons or legal entity, own, maintain, operate, engage in, assist, consult for, contract with, be employed by, any client, customer or prospective client or customer of the Company for which Employee performed work for, consulted with, provided services to, or performed any job function, including without limitation any sales or related services performed on behalf of the Company, within the twelve (12) months prior to his/her separation from employment with the Company.Employee acknowledges that Employer has made substantial investments to develop its business interests and goodwill, and to provide special training to Employee for the performance of Employee's duties under this Agreement
1 ANSWER
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.
Answered on Jul 24th, 2014 at 11:05 AM