California provides an exception to the non-compete prohibition which applies to owners. The theory is that someone in the position of meaningfully owning a company is in the position to compete with that company.
Generally, that means someone who owns a significant amount of the company (on a facts-and-circumstances basis) so just owning some stock or options in a startup isn't enough.
Generally, that means someone who owns a significant amount of the company (on a facts-and-circumstances basis) so just owning some stock or options in a startup isn't enough.