by Michelle Galbraith, J.D.; HR Adviser, CalChamber
In order to foster open competition and employee mobility, California Business and Professions Code section 16600 invalidates agreements, such as noncompetition and nonsolicitation clauses, that would restrict individuals’ ability to practice their trades or businesses.
However, an exception to this law exists when an individual sells all of their ownership in a business; in this situation, the buyer may enforce an agreement that a seller won't open a competing business or solicit former customers.
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