News & Analysis as of August 19, 2025

California

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

Federal and California’s Shared Interest in Promoting Open Competition: Isn’t it Ironic?

Fennemore on 7/31/2025

This article provides a brief history of California’s pro-competition law and describes the stalled federal initiative to extend a similar noncompete ban nationally, notwithstanding the overlapping policy interests expressed...more

The First Circuit Limits California’s Noncompete Ban

Jaburg Wilk on 10/10/2024

On September 26, 2024, the First Circuit Court of Appeals ruled against extending California’s strict noncompete ban to agreements executed outside of California and governed by another state’s law. This decision highlights...more

California Court Opines On Fiduciary Duties Of LLC Members And Covenants Not To Compete

Allen Matkins on 8/22/2024

Yesterday, the Fourth District Court of Appeal issued a noteworthy opinion addressing at least two significant questions. Samuelian v. Life Generations Healthcare, LLC, 2024 WL 3878448....more

New California State Law Addresses Noncompete Agreements

Perkins Coie on 9/19/2023

As most companies are aware, absent specific exceptions, under California Business and Professions Code (Code) Section 16600, California generally prohibits employers from entering into contracts with employees that preclude...more

Court Of Appeal Affirms Enforceability Of Post-Termination Solicitation Ban In Employment Agreement

Allen Matkins on 2/1/2022

California is famously hostile to covenants not to compete. In fact, Section 16600 of the California Business & Professions Code provides "Except as provided in this chapter, every contract by which anyone is restrained...more

Ninth Circuit Denies Sherman Act Challenge To No-Poach Provision

Sheppard Mullin Richter & Hampton LLP on 9/16/2021

In an important decision on August 19, 2021, the Ninth Circuit Court of Appeals in Aya Healthcare Services, Inc. v. AMN Healthcare, Inc. affirmed the grant of summary judgment in favor of AMN, finding that the...more

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