D'Sa

Plaintiff, Richard D’Sa (plaintiff) appeals from a summary judgment entered in favor of defendants Playhut, Inc. and Worldtec Group International (Playhut, Worldtec, collectively defendants). Plaintiff sued defendants for wrongful termination, alleging defendants violated public policy when they fired him because he refused to sign a “confidentiality agreement” that contained an illegal covenant not to compete. The trial court granted defendants a summary judgment because it determined the covenant not to compete was “within a broader employment contract including ‘choice of law’ and ‘severability’ provisions [and therefore] does not violate the public policy of the State of California.”

Plaintiff contends the fact that the covenant not to compete was severable from the other provisions of the confidentiality agreement does not make defendants’ firing of him lawful. We agree. We hold an employer cannot lawfully make the signing of an employment agreement, which contains an unenforceable covenant not to compete, a condition of continued employment, even if such agreement contains choice of law or severability provisions which would enable the employer to enforce the other…