[CA] What determines an employee’s primary place of employment for a non-compete exclusion clause?

Employment termination contract review and questions.

Received termination notice. Have questions specifically for CA too and nationwide implication. CA seems to have special clauses.

Received it already. Need to review and understand.

No.

The employer has offered a severance package if I agree to the terms of the separation agreement. I would like a perspective on the overall terms of the separation agreement and if there are elements I should be concerned about. Secondly, some of the terms are listed as not applicable to employees in CA. I just moved from VA to CA in January 2026. I need to understand if these exclusions will apply to me or not.

Here is the specific language in the contract for one such clause.

"Non-competition. During the Severance Period (as defined in the Plan), Employee shall not, directly or indirectly, establish or engage in any business or organization, or own or control any interest in (except as a passive investor in less than one percent of the outstanding securities of publicly held companies), be employed by or act as an officer, director, consultant, advisor, or lender to, any of the following located in those geographic markets where Employee has had direct and substantial involvement in the Company's operations in such geographic markets: (i) any entity that engages in any business competitive with the business activities of the Company including, without limitation, its assisted and digital (including software) tax services businesses (Prohibited Companies), (ii) any financial institution or business where any of Employee's duties or activities would relate to or assist in providing services or products to one or more of the Prohibited Companies for use in connection with products, services or assistance being provided to customers, or (iii) any financial institution or business whose primary purpose is to provide services or products to one or more of the Prohibited Companies for use in connection with products, services or assistance being provided to customers. Without limiting clause iii, any financial institution or business whose profits or revenues from the provision of services or products to Prohibited Companies exceeds twenty-five percent (25%) of total profits or revenues, as the case may be, shall be deemed to be covered by clause iii. The restrictions in this paragraph shall not apply if Employee's primary place of employment by the Company as of the Termination Date is in California, the District of Columbia, Oklahoma, Maine, Massachusetts, Nebraska, North Dakota, Virginia, Washington, or any other state prohibiting such non-competition provisions as above."

It says, "if Employee's primary place of employment by the Company as of the Termination Date is in California." What determines the primary place of employment? I work remote and moved our residence from VA to CA in January. Is that sufficient to establish CA as the primary place of employment? Or is there something else I need to look at?

In this case, the employer's headquarters is located out of state.