Employment Agreement with Renewable Energy Contractor including Covenant Not to Compete and Nondisclosure Clause 2025

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Furthermore, some states, such as California, North Dakota and Oklahoma completely ban non-compete agreements. Whereas other states, like Oregon (Senate Bill 169) and Nevada (Assembly Bill 47 22.5(7)), have even passed laws that severely limit the enforceability of non-compete agreements.
Many business owners may be surprised to learn that in California, agreements that restrict employees from joining a competitor or starting a competing business are, as a general rule, illegal and unenforceable.
It is a long-standing (if little known) principle of California law that non-compete covenants, pursuant to which employees agree not to pursue employment with a competitor of the employer for some designated period after terminating work, are generally not enforceable.
A covenant not to compete is often found in an employment contract or a sale of business contract .
Even workers labeled as independent contractorswho should have the freedom to work for multiple clientsare often required to sign non-competes that limit where they can work. Employers often present non-competes as a take it or leave it contract, forcing workers either to sign or forego employment.
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What does the ban cover? The ban covers all non-competes for U.S. workers (including employees and independent contractors) with limited carve-outs, and is subject to certain exceptions based on the FTCs statutory authority.
NDAs are designed to protect confidential information and trade secrets from unauthorized disclosure, while non-compete agreements are crafted to prevent former employees or business associates from engaging in activities that could compete with their former employer or partner.

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