Can a recruitment agency enforce its non-compete clause on previous employer and me if I move to CA?

I was hired by a recruitment/placement agency that placed me with a software company. Originally, I worked as a permanent contractor and was going to be hired full-time with the company, and at that point, the company would buy me out from the agency under the agreements in their contract. However, I decided to move back to California and continue working as a contractor for the same company.

The recruitment agency is unwilling to offer the company a buyout package for my employment and intends to indefinitely hire me out as a contractor, taking off a percentage amount from my earnings as from the start.

My understanding of CA lax labor law is out-of-state non-competes are not generally upheld. The main question is: can I join a LLC in CA that is then employed by my previous company without legal repercussions for that company?

More details: the software company is NJ-based but most likely signed their contract with the agency in NY, where I was interviewed and employed.

Details of non-compete below:

Non-Competition: The Employee agrees that during the term of this Agreement, and within one year of termination or expiration of this Agreement, no matter how terminated:

A. Not to work at or solicit work at or for a client for which the Employee performed services under the terms of this Agreement, or to place independent consultants or employees, whether on behalf of the Employee or any other person, persons, firm, company or corporation, on any data processing or computer programming or related project at such clients;

B. Not to solicit, recruit, attempt to employ, induce the employment of, or employ any employee or independent consultant of the Company or client for which the Employee performed services under this Agreement, for himself or for or by any other firm or company; and

C. The Employee shall not use any confidential information, as set forth in Paragraph 6 below, to do any of the foregoing.

The parties acknowledge that they have attempted to limit the Employee's rights to compete only to the extent necessary to protect the Company from unfair competition. However, the parties further agree that, if hte scope or enforcement of the restrictive covenant is in anyway disputed at any time, a court or other trier of fact, including an arbitrator, may modify and enforce the covenant to the extent such trier of fact believes it to be reasonable.

The Employee further acknowledges that this covenant is a material part of this Agreement and that, if the Agreement is terminated for any reason, he will be able to earn a livelihood without violating the foregoing restrictions.