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Tag Archives: non-compete

Co-Worker Non-Solicitation Provisions in Jeopardy?

Posted in Covenants Not to Compete in California, Hiring a Competitor’s Employees, Protecting Trade Secrets and Other Business Information

For years, California courts have recognized the right of employers to use non-solicitation provisions in employment agreements to prevent employees from “soliciting” their coworkers to join them at a new employer. For instance, in 1985, a California appellate court in Loral Corp v. Moyes, 174 Cal.App.3d 268 (1985), held that a non-solicitation of fellow employees… Continue Reading

New York Times Article: Noncompete Clauses Increasingly Pop Up in Array of Jobs

Posted in Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions

What do yoga instructors, event planners and exterminators have in common?  These are fields that are reportedly witnessing an increase in the use of noncompete provisions in employment agreements.  Details of this increase in the use of noncompete provisions were reported in a New York Times article this Sunday.  Click here to view article. While… Continue Reading

Another Non-Compete Held Unenforceable

Posted in Covenants Not to Compete in California, Injunctions, Protecting Trade Secrets and Other Business Information

Under California law, non-compete provisions with an employee are generally unenforceable.  Statutory exceptions to this rule include the seller of a business’s goodwill or a membership interest in an LLC.  Courts have also recognized a judicial exception to this rule: where the non-compete is necessary to protect an employer’s trade secret information.  This judicial exception… Continue Reading

Government Targets eBay’s Alleged “No Hire” Agreements

Posted in Covenants Not to Compete in California

One focus of this blog is how an employer’s use of non-compete agreements often runs afoul of California’s Business and Professions Code section 16600. Generally, the employer finds that its “non-compete” agreement will be held unenforceable by a court should it seek to enforce one against a former employee. But what can happen when one… Continue Reading

Another Door Closes on Non-Compete Agreements

Posted in Covenants Not to Compete in California, Unfair Competition

Readers of this blog will note that we frequently remind them that California law generally prohibits non-compete agreements.  There are very limited exceptions to this general rule, one being that the seller of goodwill in a business can be bound by a valid non-compete agreement to protect the goodwill that is being purchased.  Sometimes, the… Continue Reading