Non Complete Clause California

[Bill97]

--Sorry for the typo on the title--

I have been working as an independent sales representative for the past 4 years for a midwest company (I live in CA). I was just "relieved" of my territory and I have a question concerning the NonCompete clause of my contract.

The company has exercised it's right under contract to purchase my territory. This results in a 50/50 split in commission between the new representative and myself over the next three years. However, under California law, am I bound under by the CNC under this contract?

Thank you,
Bill

[Pattymd]

You'd really have to have the contract reviewed by a local attorney. Contract law are state-specific and the devil is normally in the details.

[TheRed]

Echoing the advice from Patty to take it to attorney.

Assuming you were truely an independent contractor with his own business then, I can tell you it is likely to be enforcible. CA has a broad statutory prohibition against non-competes, but one of the exceptions to the rule is when a non-compete is formed in conjunction with the sale of a business, which is what happened with you. I could look up the cite in the CA Business and Professions Code if you really needed it.

What you should be concerned about is the time, geographic, and business interest. If any of these things are overly broad, then it wouldn't be enforcible. Hopefully you negociated a fair deal for your self.

However, if you are an employee, then the entire non-compete is void. Don't take that as a license to steal clients, because non-solicitation is still protected.