Mutual NDA Template for California

No. California Business & Professions Code Section 16600 makes non-compete clauses void and unenforceable. Your California NDA should protect confidential information through non-disclosure obligations, not through restricting future employment. Non-solicitation clauses targeting employees are also restricted.

A California NDA must have clear definitions of confidential information, reasonable scope, adequate consideration, and proper execution. Courts will scrutinize overly broad definitions. Focus on protecting specific, identifiable trade secrets and proprietary information rather than general business knowledge.

Yes. SB 699 (effective 2024) extends California non-compete protections to employees regardless of where they are located, if the employer is based in California. This means you cannot use another state law to include non-compete provisions for California company employees, even remote workers in other states.

Silicon Valley norms typically use 2-3 year terms with 1-2 year survival periods. California courts may scrutinize longer terms for reasonableness. Trade secrets can be protected indefinitely, but general business information should have a defined expiration to ensure enforceability.