Can Moving To California Protect Me From A Non-compete I Signed While Working In Kentucky?
I'm 22 years old and currently work for a Kentucky-based company in a specialized B2B brokerage industry.
I signed a non-compete agreement when I started working there about 2 years ago. The agreement contains a nationwide restriction against competing with my employer, either directly or indirectly as out clientele is nationwide.
I've become pretty successful in this industry and would eventually like to start my own company doing similar work. However, I don't want to risk losing my income, spending tens of thousands of dollars in legal fees, or having a court shut down my business.
I've also been considering moving to Los Angeles for personal reasons, completely separate from the non-compete situation. If I moved, it would be a genuine relocation. I would live in California and operate my business remotely from there, serving customers nationwide.
While researching, I came across:
- California Business and Professions Code §16600: Generally voids employment non-competes.
- California Business and Professions Code §16600.5: States that certain non-competes are unenforceable regardless of where or when they were signed.
- California Labor Code §925: Provides certain California employees protections against contractual provisions requiring litigation in another state or application of another state's law.
My understanding is that California has some of the strongest employee protections against non-competes, but I'm unclear how those protections apply to someone who originally signed and worked in Kentucky.
My questions:
- If I resign from my Kentucky employer, genuinely relocate to California, and start a competing business from California, could my former employer still enforce the non-compete against me?
- Could my former employer sue me in Kentucky and obtain an injunction even though I'm living and working in California?
- Would California Business and Professions Code §16600.5 apply to my situation, given that the agreement was signed in Kentucky?
- Would Labor Code §925 provide any protection if I signed the agreement before moving to California?
- How much does it matter whether my agreement contains a Kentucky choice-of-law or forum-selection clause?
I'm not looking to use confidential information, steal clients, or violate trade-secret laws. I want to establish my own company using independently developed business relationships and systems.
I've already contacted a Kentucky attorney and plan to
a California employment attorney as well. I'm just trying to better understand how these interstate non-compete laws work before making a major relocation or business decision.
- Location: Kentucky.
Has anyone dealt with a similar situation, or know of relevant cases involving California employees who originally signed non-competes in another state?
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