Can I start up my own business after leaving an employer that had me sign paper work saying that I would not?
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Can I start up my own business after leaving an employer that had me sign paper work saying that I would not?
I’m going into a similar business that I was working in before, therefore I will be considered a competitor.
Asked on September 8, 2013 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If you signed a non-competition agreement, it is enforceable. If you start up a competiting business, you could be in breach or violation of the agreement and your employer could sue you for monetary compensation or to get a court order requiring you to shut down the competing business.
Note that the law does put limits on how long (e.g. how many months or years) these agreements can be enforced. There is no hard and fast rule for an acceptable length of time: it varies by industry, by your level and compensation, by how close the competing business is, etc. You should take the agrement to an employment law attorney to review with you, to see exactly what you are barred from doing, for how long.
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