EmploymentQuestion 1032 of 1605
A contractor wants former employees never to work for a competitor. Under California Bus. & Prof. Code §16600, a non-compete clause preventing a former worker from practicing their trade is generally:
a.Enforceable for up to five years
b.Void and unenforceable in most circumstances
c.Enforceable only in the construction trades
d.Fully enforceable if the employee signed it
Explanation
Bus. & Prof. Code §16600 voids most contractual restraints on a person's ability to engage in a lawful profession, trade, or business. California strongly disfavors employee non-compete agreements, and recent legislation reinforces that such clauses are generally void and even unlawful to impose.
Law Reference: Business & Professions Code §16600Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)