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An employer can object to your career move without having the legal right to prevent it. In California, most employment non-competes are void, including restrictions designed to keep former employees from taking similar positions with competing businesses. The fact that your signature appears on the contract does not give every sentence legal force. Additionally, restrictions do not become valid because the employer calls them reasonable, for example, by limiting it to a short period or geographic area, or naming particular competitors. Reach out to our Orange County employment law attorney from Aegis Law Firm today for a free consultation.
The company may send a letter demanding that you reject the offer or disclose information about the new position. It may also contact the new employer and claim that hiring you will expose that business to legal action. In more serious disputes, your former employer may ask a court for an injunction, which can prohibit you from using specific company information, contacting certain customers, or engaging in other disputed conduct while the lawsuit continues.
To obtain an injunction, the employer must show that its claim is likely to succeed and that waiting until the lawsuit ends would cause serious harm. Evidence that you took or used trade secrets may support that request. Accepting a job with a competitor, without evidence of wrongful conduct, does not.
A clean departure can prevent a weak non-compete threat from becoming a stronger dispute over company property. Return laptops, phones, access cards, paper files, and storage devices. Remove company accounts from personal devices only through an approved process. Keep work emails, company folders, customer spreadsheets, and other business records on company systems rather than forwarding or downloading them for future use. Preserve existing files and messages because deleting records can create additional problems. You may retain copies of your employment contract, compensation records, resignation notice, and communications about the competitor that you lawfully possess.
Former customers may choose to work with you after you change jobs, provided that you do not use your previous employer’s trade secrets or confidential records to obtain their business. The company does not own every customer relationship merely because you managed the account. There can be legal problems if you copy a private customer list, take account notes, use confidential pricing or renewal information, or begin moving business before your employment ends. Those actions may support claims involving protected information or misconduct during employment.
A demand letter can create problems even when your previous company cannot ultimately prove its claims. The new employer may delay your start date or withdraw the offer rather than become involved in a dispute. An employment lawyer can examine the agreement, investigate the accusations, and prepare a response that addresses legitimate concerns without giving up the new position. If the former employer has already contacted your future employer or requested an injunction, early legal advice can help prevent unsupported demands from costing you a career opportunity.