Homepage Valid Non-compete Agreement Template Free Non-compete Agreement Document for California State

Document Sample

California Non-Compete Agreement Template

This Non-Compete Agreement ("Agreement") is made and entered into as of the ____ day of __________, 20__, by and between:

Employer Name: ___________________________

Address: ______________________________

and

Employee Name: ___________________________

Address: ______________________________

In consideration of the employment relationship, the parties agree to the following terms:

1. Non-Competition Obligation:

The Employee agrees that during the term of employment and for a period of ____ months thereafter, the Employee will not engage in any business activities that are in direct competition with the Employer's business within the following geographic area: _______________________.

2. Definition of Competing Activities:

For the purpose of this Agreement, "competing activities" include any business or service that is similar to or competes with products or services offered by the Employer.

3. Exclusions:

  • Investments in publicly traded companies.
  • Employment with a non-competitive business.

4. Governing Law:

This Agreement shall be governed by and construed in accordance with the laws of the State of California.

5. Severability:

If any provision of this Agreement is found to be unenforceable or invalid, the remaining provisions will continue in full force and effect.

6. Entire Agreement:

This Agreement contains the entire understanding between the parties and supersedes any prior agreements, understandings, or negotiations.

IN WITNESS WHEREOF, the parties hereto have executed this Non-Compete Agreement as of the day and year first above written.

Employer Signature: ___________________________

Date: ____________________

Employee Signature: ___________________________

Date: ____________________

Form Data

Fact Name Description
Legality Non-compete agreements are generally unenforceable in California.
Governing Law California Business and Professions Code Section 16600 governs non-compete agreements.
Exceptions Certain exceptions exist, such as for the sale of a business or partnership dissolution.
Duration Any duration specified in a non-compete agreement is typically irrelevant due to unenforceability.
Geographic Scope Geographic limitations are also generally disregarded in California non-compete agreements.
Impact on Employees Employees are free to work for competitors without restrictions, promoting job mobility.

California Non-compete Agreement - Usage Guidelines

Filling out the California Non-compete Agreement form requires careful attention to detail. Once you have the form in front of you, you’ll be ready to provide the necessary information. Follow these steps to ensure that you complete it correctly.

  1. Start by entering your full name in the designated field. Make sure to double-check for any spelling errors.
  2. Next, provide the name of the company or organization you are associated with. This is usually the employer's name.
  3. In the following section, write the date when you are completing the form. Use the format MM/DD/YYYY for clarity.
  4. Now, specify the duration of the non-compete agreement. This could be a specific number of months or years.
  5. Indicate the geographical area that the non-compete agreement will cover. Be as specific as possible.
  6. Read through the terms of the agreement carefully. Ensure that you understand each clause before proceeding.
  7. Once you are comfortable with the terms, sign the form in the designated area. Make sure your signature is clear.
  8. Finally, date your signature to confirm when you signed the agreement.

After you’ve completed the form, keep a copy for your records. It’s important to have documentation of your agreement. If needed, you may also want to discuss the terms with a legal professional to ensure everything is in order.

Dos and Don'ts

When filling out the California Non-compete Agreement form, it is essential to be aware of certain practices that can impact the validity and enforceability of the agreement. Below is a list of things to do and avoid during this process.

  • Do read the entire agreement carefully before signing.
  • Do ensure that the terms are clear and understandable.
  • Do consult with a legal professional if you have questions.
  • Do keep a copy of the signed agreement for your records.
  • Don't sign the agreement under pressure or without understanding its implications.
  • Don't ignore any clauses that seem unreasonable or overly restrictive.

Adhering to these guidelines can help protect your rights and ensure that the agreement is fair and enforceable.

Common mistakes

  1. Failing to understand the purpose of the agreement. Many people overlook that non-compete agreements are meant to protect business interests, not to restrict employees unnecessarily.

  2. Not specifying the duration of the non-compete clause. A vague timeline can lead to confusion and disputes. Clearly state how long the restrictions will last.

  3. Neglecting to define the geographic scope. Without clear boundaries, the agreement may be too broad and unenforceable.

  4. Overlooking the need for mutual consideration. Both parties should receive something of value in exchange for signing the agreement. This could be a job offer, training, or access to sensitive information.

  5. Using overly restrictive language. A non-compete should be reasonable. If it imposes excessive limitations, it may not hold up in court.

  6. Failing to review state laws. California has specific rules regarding non-compete agreements. Ignoring these can render the agreement ineffective.

  7. Not seeking legal advice. Consulting with a legal professional can help ensure that the agreement is fair and enforceable.

  8. Forgetting to keep a copy of the signed agreement. Both parties should have a copy for their records. This helps avoid disputes in the future.