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Since the 1849 gold rush, California has had a reputation as a great place to seek—and find—your fortune. The Golden State is home to the Golden Gate Bridge, the Golden State Warriors and, in Silicon Valley, golden opportunities. But, as you might suspect, California sometimes operates like its own country, with laws that aren’t like anyone else’s.

As a startup company on the East Coast, why require all employees to sign non-competition agreements, given that the practice places our company at a competitive disadvantage to companies located on the West Coast that do not use non-competes?

This is the fourth in a series of posts on common costly legal mistakes made by founders of early-stage companies.