Appellate Practice Attorney serving New York, NY
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.
Answered on Nov 01st, 2013 at 3:30 PM