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Non-Compete
Clause - How It Can
Be Enforced
by Daniel Chammas
A California attorney and partner at Venable LLP, Daniel
(Dan) Chammas possesses a wealth of experience in
employment law. Daniel Chammas handles a variety of
cases, including those pertaining to non-compete
provisions.
Also known as a covenant not to compete, a
non-compete clause keeps a person from
gaining employment with another company or
establishing a business of similar nature that can
be deemed detrimental to the enterprise in
which he or she previously held a position.
By signing the agreement, an employee must adhere to time
and location restrictions if the document is structured to
limit localities.
For example, a business can state a former
employee cannot seek employment with a
competitor within a 10-mile radius of the
company for one year following his or her
termination. The overall goal is to protect the
business interest of the former employer.
In California, however, the law is different.
A non-compete clause is generally not
enforceable, no matter how reasonable the
terms. Employees do not have to sign a covenant
not to compete to gain or maintain employment
with a company.
Furthermore, a business is liable for conflicts
raised between its former employee and the new
employer if it attempts to enforce a non-
compete agreement. However, the former
employer does have the right to take action to
protect confidential information such as its own
trade secrets.

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Non compete clause - How It Can Be Enforced by Daniel Chammas

  • 1. Non-Compete Clause - How It Can Be Enforced by Daniel Chammas
  • 2. A California attorney and partner at Venable LLP, Daniel (Dan) Chammas possesses a wealth of experience in employment law. Daniel Chammas handles a variety of cases, including those pertaining to non-compete provisions.
  • 3. Also known as a covenant not to compete, a non-compete clause keeps a person from gaining employment with another company or establishing a business of similar nature that can be deemed detrimental to the enterprise in which he or she previously held a position.
  • 4. By signing the agreement, an employee must adhere to time and location restrictions if the document is structured to limit localities.
  • 5. For example, a business can state a former employee cannot seek employment with a competitor within a 10-mile radius of the company for one year following his or her termination. The overall goal is to protect the business interest of the former employer.
  • 6. In California, however, the law is different.
  • 7. A non-compete clause is generally not enforceable, no matter how reasonable the terms. Employees do not have to sign a covenant not to compete to gain or maintain employment with a company.
  • 8. Furthermore, a business is liable for conflicts raised between its former employee and the new employer if it attempts to enforce a non- compete agreement. However, the former employer does have the right to take action to protect confidential information such as its own trade secrets.