One area in which the California bankruptcy laws vary from a lot of other jurisdictions%27 laws concerns how they limit covenants not to struggle. An agreement not to struggle is an agreement that confines the degree to which businesses or people will struggle with one another. For example, a worker is often asked to sign an agreement not to race with his or her company for a sure time after the employment ends.
Covenants not to struggle are frequently held to be exterior the bankruptcy laws. However, California has a statute that voids any agreement that restrains anybody from attractive in a lawful commerce or occupation. Though the statute has some exceptions, counting a ban on unjust rivalry, it can serve to void covenants not to struggle that would be effectual below central law or the laws of other states |
