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Non-Compete Contract in CA

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  • Non-Compete Contract in CA

    I know non-compete contracts between employer and employee are for the most part illegal in California, with a few exceptions.

    But what about non-compete contracts between to seperate company's.

    For instance, I work for a car cleaning company, that ill call car clean, that has a contract with a major car rental company that well call rent car, to clean its cars on site. Our permanant job site is the clients place of bussines.

    Now, I no longer work for car clean, but car clean is telling me that there is a a clause in car clean's contract with rent car saying that rent car can not hire employee's that previously worked at car clean for atleast 2 months after they have left car clean. Is this clause legal, can it legally prevent car rent from hiring previous employee's untill after 2 months of leave from clean car?

    Another quick question. Now that I know longer work for car clean I am starting up my own business of the same type as car clean. Rent car is looking for another service provider because clean car is not fulfilling there end of the contrct. Can the non-compete type clause in the contract between car clean and rent car prevent rent car from contracting with my company to do the work?

    I was a manager of car clean, but there were definitly no trade secrets, atleast that I knew about. After all, its just cleaning cars, not much secret to that.

  • #2
    Sounds like BS to me. One company cannot tell another who they can or cannot hire unless they are affiliatesand even then they still don't have the authority, that I can see.
    I don't believe what I write, and neither should you. Information furnished to you is for debate purposes only, be sure to verify with your own research.
    Keep in mind that the information provided may not be worth any more than either a politician's promise or what you paid for it (nothing).
    I also may not have been either sane or sober when I wrote it down.
    Don't worry, be happy. is a good resource!


    • #3
      One company cannot tell another company who they can or cannot hire, but two companies can have a "gentleman's agreement" that they will not hire each other employees, or that they will only hire them after x length of time.
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


      • #4
        liable for what if denied to work?

        Ok good, so there is no legally binding law in california to that can legally prevent rent car from hiring anyone.

        another quick one. Previous employee of mine put in 2 weeks notice. Previous wanted to work for rent car because they said they would pay him more. My company denied previous employee the chance to do so.

        So is car clean liable for anything? damages, loss of wages or anything of the sort?
        Previous employee got another job and the end of his quitting notice, but it paid less then what rent car was going to pay him


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