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Non-Compete Disclosure


Hydronos Corporation Employee Rights Statement

Hydronos Corporation complies with California law, which makes nearly all non-compete agreements illegal and unenforceable.

1. What the Law Says

  • California Business & Professions Code §16600:
     “Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.”

     
  • This means that employers in California cannot prevent employees from working for a competitor, starting their own business, or engaging in their chosen trade after leaving employment.
     

2. Limited Exceptions

The only recognized exceptions under California law are:

  • Sale of a Business: A seller may agree not to compete with the buyer in a defined geographic area.
     
  • Dissolution of a Partnership or LLC: Partners or members may agree to certain restrictions when winding down a company.
     

Outside of these rare cases, non-compete agreements are not valid.

3. Court Decisions

California courts have consistently rejected non-competes:

  • Edwards v. Arthur Andersen LLP (2008): The California Supreme Court held that non-compete clauses in employment agreements are void.
     
  • Golden v. California Emergency Physicians (2015): The Ninth Circuit confirmed that even settlement agreements restricting employment violate §16600.
     

4. New Protections for Employees (2024)

Recent California laws have strengthened these protections:

  • SB 699 (effective January 1, 2024): Makes it unlawful for any employer to enter into, attempt to enforce, or suggest a non-compete with employees or prospective employees.
     
  • AB 1076 (effective January 1, 2024): Requires employers to notify current and certain former employees that any non-compete clauses they may have signed are void.
     

5. Hydronos Policy

  • Hydronos does not and will not use non-compete agreements as a condition of employment, partnership, or contracting.
     
  • Any non-compete clause presented to an employee in California is automatically void and unenforceable.
     
  • We fully respect the right of every team member to pursue future work, whether with a competitor, independently, or in a new industry.
     

6. If You Encounter a Non-Compete

If you are ever asked to sign a non-compete agreement in California — whether by Hydronos or any other employer — you should know:

  • It is unenforceable under California law.
     
  • You may have legal rights if an employer tries to restrict your future employment.
     
  • Questions or concerns can be directed to a qualified employment attorney or the California Department of Industrial Relations.
     

📌 Hydronos Corporation stands for fairness, opportunity, and compliance with California labor law. We believe your skills, knowledge, and trade experience are yours to use — freely and without unlawful restrictions.


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