No Non-Compete Clauses in California

The California Supreme Court just upheld an 1872 law banning non-compete clauses – agreements that after a manager leaves a company, she won’t go work for a competitor. Non-compete clauses are useful tools for companies that would otherwise be weary of sharing trade secrets with employees, risking their use at another company. And the employees are often compensated heavily for agreeing. If you want to work at your company’s competitor after you retire, you shouldn’t go complaining to the California Supreme Court – just don’t sign a non-compete agreement!