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I'm curious to know whether people in the US holding senior positions are not subjected to non-compete periods following their termination with their current employer (e.g. not working for a direct competitor for a period of 3 months etc.)?

It surprised me that Marrisa Mayer was allowed to quit Google and then start at Yahoo the very next day, is that common?



It's illegal in California to have a non-compete clause. It also only applies if one is fired from said previous employer, not one who's left at will.


"It's illegal in California to have a non-compete clause." Not quite. They're just unenforceable. http://en.wikipedia.org/wiki/Non-compete_clause#California

"It also only applies if one is fired from said previous employer, not one who's left at will."

?

Are you referring to California here, or non-competes in general? If the latter, I'm, pretty sure that you're incorrect. " The use of such clauses is premised on the possibility that upon their termination or resignation, an employee might begin working for a competitor or starting a business,..." (top of same Wiki page)


Non-compete's are generally considered un-enforceable in California.

Also, fired/quit doesn't affect non-competes.


Why would non-competes only apply if fired? I think they are in fact designed specifically to apply when the employee leaves on their own volition.


Huh? Every non-compete I've had forced down my throat (I've refused to sign the last several) was specifically guarding against me leaving the company for a competitor.


Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.

Its CA law. From the business and professions code [1].

[1] http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc...


A clause restraining you from engaging in your "profession, trade, or business", i.e. in general, is unenforceable. A clause restraining you from engaging with another party may or may not be unenforceable depending on the details.

In other words, nobody can enforce a clause preventing a programmer from programming for company B after leaving company A purely on the basis of restricting competition.

They may have a case if e.g. company B contracted company A to do some work and then bought out company A's programmer (e.g. to save money), but only if the contract between company A and the programmer in question has a restraint specifically penalizing this scenario.

(Even then, it doesn't mean companies will choose to enforce the contract. I've worked for companies where the restraint was between the companies A and B, and in the interest of preserving business relationships, company A decided not to pursue their legal right to recourse when company B poached an employee from A; the employee did not break conditions of their employment with A as the restraint was between their companies.)


Employers can put all sorts of things in employement contracts to scare employees, but that doesn't mean they're enforceable.


Her Yahoo offer letter does have a non-compete clause, but it's only in effect while she's still employed at Yahoo. Among other things, she can't own more than 1% of any competing business. She was at Google for a long time but I don't think she ever got that much stock.




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