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NON COMPETITION AGREEMENT

November 23, 2012 – Business Law

CAN A BUSINESS OWNER ENFORCE A REASONABLE NON COMPETITION AGREEMENT WITH A FORMER EMPLOYEE?

An agreement by a former employee not to compete when he leaves the business’s employment is enforceable only in 3 situations. If the agreement is in connection with the sale of the business, or the dissolution or termination of a partnership, or dissolution or the termination of an interest in a limited liability company. (California Business and Professions Code Section 16600 – Edwards v. Arthur Anderson)

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