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Legal to have non-compete as part of Exit Bonus in California

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  • #1

    Legal to have non-compete as part of Exit Bonus in California

    Hi,
    I am working for a company in California and am scheduled to receive a guaranteed bonus as a part of my employment agreement on 1st Jan 2025. I have to leave the company for some personal reasons within the next 2 months and have requested the company to pay me the guaranteed bonus in May 2024 so that I can quit the company. My employer saves more in payroll than the amount of this exit bonus. My employer has agreed to this request but wants me to sign an agreement saying I won't work for competitors (with specific name of companies) till 1st Jan 2025.

    Is this kind of agreement legal and enforceable? Any help will be appreciated.
    Tags: None
  • #2
    Good afternoon. I am sorry but you have found your way to a UK site and our legal knowledge is based on English and Welsh law not Californian in the USA.

    You may be mistaking us for https://legalbeagles1.blogspot.com/
    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

    I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

    I do my best to provide good practical advice, however I do so without liability.
    If you have any doubts then do please seek professional legal advice.

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    Comment

    • #3
      I found the answer just by asking the question on Co-pilot
      Non-compete clauses in employment contracts are null and void in California including such clauses in existing contracts

      It is different in the UK. Post-termination restriction clauses or non-complete clauses are legal if they are reasonable

      Comment

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