A non-compete law is a law that stipulates where an employee is allowed to work following the termination of their employment with a certain company. Essentially, most companies wish to ensure that you are not giving away industry secrets to competitors and will restrict employ to companies in their same field of work.
The non-compete law in New York is simple: if you sign a non-compete agreement with your employer, that agreement remains in effect for its duration (typically 1–2 years after separation with the company), regardless of the reason that employment was terminated. In California, however, the non-compete is null and void if the employee is terminated from the company involuntarily. So, if someone is fired, they can immediately work for a competitor.
For an employee, the California law is better because it doesn't restrict where an employee can work immediately after being fired from a company. A lot of the time, the employees have a great deal of experience in that particular field, and it would be much easier to get a job at a rival company than elsewhere. However, for a business, the New York law is more beneficial because, if an employee gave away company secrets to a competitor, it could endanger a company. This is especially relevant if said employee is disgruntled over being recently terminated.
Saturday, February 23, 2013
Explain the difference(s) between California's and New York's public policies on non-competitions agreements in the employment arena. Which one is better?
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