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We have seen a rise in employees going on the offensive and suing their former employers for damages for not informing them that their noncompete is invalid under the applicable state law or for exaggerating the scope of a...more
On Jan. 1, new legislation aimed at curbing the use of unenforceable noncompete agreements took effect in California. The new laws, which impose potentially harsh consequences on employers for requiring employees to sign...more
California has long had the most restrictive laws against employee non-compete agreements. Effective January 1, two new legislative bills, Senate Bill 699 and Assembly Bill 1076, tightened California’s restrictions even...more
California law has for many years treated agreements that restrain one from engaging in a lawful profession, trade, or business as void and unenforceable, unless an exception applies. This applies to most non-compete and...more
...NLRB Issues Final Rule on ‘Joint Employer’ Standard On - October 26, 2023, the National Labor Relations Board (NLRB) issued a final rule titled “Standard for Determining Joint Employer Status,” which rescinds and...more
For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more
On the heels of the New York and FTC non-competition legislation (discussed here and here), Governor Newsom recently signed an amendment to California’s non-compete ban into law. The amendment, S.B. 699, takes effect on...more
It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more
In 1995, the California Supreme Court held that a plaintiff pursuing a claim for interference with a prospective contractual or economic relationship had to plead that the defendant's conduct was wrongful. Della Penna v....more
In a recent decision, Ixchel Pharma, LLC v. Biogen, Inc., the Supreme Court of California opened the door for some restrictive covenants between commercial enterprises, but it left alone California law generally prohibiting...more
Business-to-business contracts often concern trade secrets. Contracts such as NDAs, joint development agreements, license agreements, vendor agreements, and other commercial agreements commonly contain restrictive covenants...more
Called upon by the Ninth Circuit in Ixchel Pharma, LLC v. Biogen, Inc. to answer two key questions concerning the validity of a settlement provision requiring a party’s termination of a collaboration agreement with a...more
In Ixchel Pharma, LLC v. Biogen, Inc., S256927, 2020 WL 4432623 (Cal. Aug. 3, 2020) (“Ixchel Pharma”), the Supreme Court of California clarified two points: (1) that to state a claim for interference with an at-will contract...more
In Ixchel Pharma, LLC v. Biogen, Inc., the court addresses “an important question of California law, potentially affecting all contracts in California that in some way restrain a contracting party from engaging in a...more
The California Supreme Court in the 2008 case, Edwards v. Arthur Andersen LLP, ruled that a provision in an employment agreement that prevented an employee from competing with his former employer following the termination of...more
In Ixchel Pharma, LLC v. Biogen, Inc., 20 Cal. Daily Op. Serv. 7729, __ P.3d __(August 3, 2020), the California Supreme Court made it easier for businesses to enforce restrictive covenants against other businesses. This...more
This week, on August 3, 2020, the California Supreme Court issued its opinion in Ixchel Pharma, LLC v. Biogen, Inc., which resolved two questions regarding the standards to be applied for non-competition agreements and...more
The most powerful tool capable of invalidating competitive restraints under California law is Business and Professions Code section 16600. That statute states that “[e]very contract by which anyone is restrained from...more
Time Spent By Employees In Exit Searches Is Compensable - Frlekin v. Apple Inc., 2020 WL 727813 (Cal. S. Ct. 2020) - In this opinion, the California Supreme Court answered a question certified to it by the United...more
This edition of Employment Flash looks at a series of recent NLRB decisions, many of which apply to all employers, not just those with unionized employees. We also discuss other U.S. federal and state labor and...more
California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more
California Business & Professions Code Section 16600 declares void "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind". The California Supreme Court famously...more
It’s hard to keep up with the news these days. It sometimes feels like you can’t step away from your phone, computer, or TV for more than an hour or so without a barrage of new information hitting the headlines—and you’re...more
This edition of the Employment Flash looks at the new Department of Labor directive regarding contractor compensation practices; recent NLRB developments, including a draft rule regarding joint employment; the rise of...more