Man I've been signing my life away. Sorta. I just realize that non-compete clauses are unenforceable in California. Sez Wikipedia.
Unlike the situation in other states, non-compete agreements are illegal in California and against public policy. (California Business and Professions Code Section 16600).
[edit] Out of State Agreements are Not Enforceable
The preeminent court decision discussing the conflict between California law and the laws of other states is Application Group, Inc. v. Hunter Group, Inc., 61 Cal.App.4th 881 (1998). In Hunter, a Maryland company required that its Maryland based employee agree to a one-year non-compete agreement. The contract stated that it was governed by and to be construed according to Maryland law. A Maryland employee then left to work for a competitor in California. When the new California employer sued in California state court to invalidate the covenant not to compete, the California court agreed and ruled that the non-compete provision was invalid and not enforceable in California. Business and Professions Code Section 16600 reflects a "strong public policy of the State of California" and the state has a strong interest in applying its law and protecting its businesses so that they can hire the employees of their choosing. California law is thus applicable to non-California employees seeking employment in California.
Whether California courts are required by the full faith and credit clause of the United States Constitution to enforce equitable judgments from courts of other states, having personal jurisdiction over the defendant, that enjoin competition or are contrary to important public interests in California is an issue that has not yet been decided.
I've actually been in several situations where such dicey questions are raised, and I'm almost positive that I've signed contracts with non-compete language in them, specifically about customers that I've consulted with. Not that there are any particular customers I've had in a while that I would really want to work for full time, but there are some I wouldn't mind stealing away as clients. Up until today I've never considered the possibility.
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