Mr. Buus Defeats Attempt by Employer to Enforce Covenant Not to Compete

A large, out-of-state corporation sued one of its former employees in California for an alleged breach of an employment contract containing a promise by the employee not to compete with the employer for a number of years after quitting or being fired (a so-called "Covenant Not to Compete"). Unfortunately for the corporation, though, such Covenants Not to Compete are invalid under California law so, when it asked the Court for a preliminary order prohibiting the former employee from competing with that corporation, the Judge refused and denied the request. Later, the Judge also ruled that the Complaint itself did not state a valid claim against the former employee for the same reasons. "Although California companies may not like it, they simply cannot prevent employees from competing with them after the employment relationship ends," handling attorney William Buus stated. "They may protect their trade secrets and other intellectual property rights, but they simply cannot stop a former employee’s fairly competing with them. Especially in this economy, employees must have the right and freedom to earn a living in their chosen field of business.”