In California, an employee has the right to pursue any lawful employment, including competition against a former employer.  However, California law also aims to protect business, including their trade secrets and contractual (or potential contractual) relationships.  "Unfair competition" is where these competing policies frequently clash.

"Unfair competition" comes in various forms:

• Claims based on a current employee competing with an employer.
• Claims that a current or former employee misappropriated the employer's trade secrets, such as a customer list or proprietary customer information.
• Claims that an employee breached a non-compete provision or non-solicitation of customers provision in an employment agreement.
• Claims that a former employee solicited employees away from the employer.

Unfair competition cases typically include claims of intentional interference with contractual relations, intentional interference with prospective business advantage, violation of Business & Professions Code Section 17200 and misappropriation of trade secrets. A successful plaintiff may be able to recover damages, the defendant’s unjust profits, injunctive relief, punitive damages and attorney’s fees.

The information you obtain on this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.