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There are specific cases where they should be allowed, but in the general case no. Specific cases shouldn't even rely on competition, but of specific non-public information.

The list of customers of a company is something you should not be taking with you when you go work for a competitor. The next feature you will implement is non-public information.

A non compete is only about someone who you want to continue working for you. If the competitor offers a significantly better wage you didn't want to keep them in the first place (even if you offer match too bad - if you were serious you would have been paying them that much already), though of course the competitor needs to be serious (that is not hiring someone away and then letting them go). If you lay someone off then you don't want that person to work for you and the non-compete is obviously invalid.




Your interpretation of the coverage of applicability of noncompetes is interesting. But unfortunately that is not how many noncompetes are written and in many states enforced. Noncompetes, at least as usually written, restrict employees regardless of whether they resigned or are laid off [1,2]. The chilling effect is exceptionally strong. If you are laid off and under a noncompete, what company is going to dare subject themselves to the legal risks in hiring? I know multiple folks and personally experienced being subject to multi-year long unpaid noncompetes that were geographically universal after layoff in even California where NCs are supposedly invalid. And every attorney I talked to said there was nothing I could do. Companies have millions to spend, strong arbitration protections, and way better attorneys than individuals could ever hire. Few will dare to challenge.

[1] https://www.hchlawyers.com/business-law/contract-law/non-com...

[2] https://katzmelinger.com/understanding-non-compete-agreement...


What I wrote is my opinion of what it should be. The law is very different from what I think it should be.

It is too late or I'd edit my original post to make that clearer.


The list of customers of a company is something you should not be taking with you when you go work for a competitor.

Businesses already have recourse for information like this. If they take reasonable steps to protect the customer list then they can sue the ex-employee for stealing trade secrets.




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