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Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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Hello Joseph, With regards XXXXX XXXXX agreement in California,

Resolved Question:

Hello Joseph,

With regards XXXXX XXXXX agreement in California, can you please advise me on the following paragraph that I signed during employment in 2010. There is a paragraph that states that one agrees not to work for any competitive enterprise including after hours, wouldn't this constitute a non-compete agreement? I thought non-compete agreements were essentially outlawed in California.

1.1 Employment by Company. Subject only to the exceptions provided in this Agreement, You agree to devote your full business time while at Company, attention, skill, and effort exclusively to the performance of the duties that Company may assign You from time to time. In this regard while you remain a Part-time Employee of the Company you agree not to engage in any business activities or to render any services of a business, commercial, or professional nature, whether or not for compensation, for the benefit of anyone or any business that is a competitor or potential competitor of the Company during business hours or with equipment and resources owned by Company or on any premises owned or operated by Company,, unless Company has given its consent in writing in advance.

You agree not to work for any competitive enterprise during your employment by Company, including after hours, on weekends, or during vacation time, even if only organizational assistance or limited consultation is involved.

In order to avoid any perceived conflict with the above, uncertainties should be brought to the attention of the Company and documented if necessary (e.g. academic duties).
Submitted: 5 years ago.
Category: California Employment Law
Expert:  Joseph replied 5 years ago.

Unfortunately, non-compete agreements are only considered agreements that restirct your employment after you are employed by a company.

A company is still free to require you to work exclusively for that company during your employment with that company, and would be allowed to terminate you for violating that part of the agreement.

Unfortunately, since you are considered an at-will employee, you could be terminated at any time for any reason while employed with the company, which would include engaging in any outside business while you are employed with the company.

Customer: replied 5 years ago.
Hi Joseph,
Can you please follow up on the answer?
Here is the real deal:
I'm looking for another job, and my outside business is successful, so I would like to list the relevant management / business experience in my resume. I'm concerned that my employer will claim that there was a conflict of interest / breach of non-compete agreement. Being terminated is fine, but are there any fines, or legal trouble otherwise?

Expert:  Joseph replied 5 years ago.
No, the employer wouldn't have any cause of action against you for violating the agreement while you were employed.

Other than being terminated, you wouldn't face any additional repercussions if your employer believes that you breached the non-compete agreement during your employment.
Customer: replied 5 years ago.
Final question:

Let's assume that I keep running my business running presently and in the future.
And assume I also wanted to work for another company in CA.

In your opinion, on average - would I be limited to consulting jobs, instead of full time jobs due to agreements such as a above included in full-time job contracts?

Thank you so much!
Expert:  Joseph replied 5 years ago.
Yes, unfortunately, you probably would be limited to consulting jobs instead of full-time jobs, since most full-time jobs would have contracts that would require that you not engage in any competing business while you are employed with the company.
Joseph and other California Employment Law Specialists are ready to help you