Non-Compete Clauses: Are They Enforceable in California?
If you’re a construction worker in California, you may have heard of a “non-compete clause” in your contract or employment paperwork. These clauses are often designed to prevent employees from working for a competitor or starting a similar business after leaving a job. But are they actually enforceable in California?
What is a Non-Compete Clause?
A non-compete clause is a rule included in some employment contracts. It restricts workers from joining or starting a competing business for a certain amount of time or within a certain geographical area after leaving a job. Employers may use these clauses to protect trade secrets or prevent losing valuable employees to competitors.
California’s Strong Stance Against Non-Compete Clauses
California law is very clear when it comes to non-compete agreements: they are not enforceable in most cases. This is especially true for regular employees, including those in the construction industry. The law favors workers’ rights to seek new employment and grow in their careers without restrictions.
Under California Business and Professions Code Section 16600, “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” This law applies to nearly all employees, whether you work as a foreman, carpenter, electrician, or general laborer.
Exceptions to the Rule
While most non-compete clauses are not allowed in California, there are a few narrow exceptions that might apply in business sales or for high-level executives who own a part of the company. However, these exceptions rarely relate to typical construction workers, subcontractors, or hourly employees.
Why Employers Still Use Non-Compete Clauses
Even though California doesn’t usually allow non-compete clauses, some employers still include them in contracts. This might be because they’re using generic contracts from other states, or they hope workers won’t know their rights. These clauses can confuse workers or even scare them away from seeking new, better jobs.
If you’re a construction worker and are being asked to sign a non-compete clause—or are being threatened with one—you should know that the law is likely on your side. In most cases, you do not have to follow that clause.
Your Right to Work is Protected
California strongly protects the rights of all workers, including those in construction, to choose where and how they work. If you leave a job and want to work for a competitor, start a new business, or move to a different company, your former employer cannot legally stop you from doing so through a non-compete agreement.
What to Do If You’re Facing a Non-Compete Problem
If you’re being held back by a non-compete clause in California, or feel pressured by an employer not to take a new opportunity, don’t face it alone. Legal help is available. Understanding your rights and standing up for them is the first step to protecting your career and your future.
Call Jonny Law at 800-566-4868 for a free consultation. Jonny has years of experience dealing with construction worker employment issues, including illegal non-compete clauses. Make sure your rights are protected and that you’re getting the fair treatment you deserve.