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Non-Compete Agreements › Restrictive Covenants › California

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... more +
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 -
Fennemore

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

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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

Littler

The (Less-Than-Golden) State of Confidentiality Provisions in California

Littler on

It is well known that California takes a dim view towards restrictive covenants in the workplace. Business & Professions Code Section 16600 prohibits employee non-compete agreements, stating that “every contract by which...more

Jenner & Block

Client Alert: Employers Beware: Employees Are Seeking Damages for Unenforceable Noncompetes

Jenner & Block on

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

Morrison & Foerster LLP

Non-Compete Round Up- FTC, NLRB, California and Delaware

Morrison & Foerster LLP on

As we approach the end of the first quarter in 2025, we have seen notable developments in non-compete law over the last 12 months. As the new administration decides what to do with non-competes at the federal level, state...more

Mintz

Mintz on Air: Practical Policies - Non-Competes: Are They Still a Thing?

Mintz on

In the latest episode of the Mintz on Air: Practical Policies Podcast, Member Jen Rubin hosts a conversation on the status and enforceability of non-compete agreements. This episode is part of a series of conversations...more

Seward & Kissel LLP

Employment Litigation Roundup: January 2025

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Seventh Circuit upholds forfeiture-for-competition provision in restricted stock unit agreement - A Seventh Circuit panel, in LKQ Corporation v. Rutledge, held that an employer could enforce a “forfeiture-for-competition”...more

Fisher Phillips

One Year of California’s New Non-Compete Law: 5 Tips for All Employers to Stay Compliant

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California is well-known for prohibiting most non-compete agreements in the employment context, but the state took things to the next level a year ago. On January 1, 2024, California introduced a new statute that makes...more

Payne & Fears

[Webinar] New CA Employment Laws 2025: Are You Prepared? - December 4th, 11:30 am - 12:30 pm PT

Payne & Fears on

Join us for a lively discussion of critical year-end updates for California employers. We will address new legislation and key case rulings. Topics include: - Key bills relating to freelance workers, “captive audience”...more

Foley & Lardner LLP

Recent California Federal Court Decision Indicates That Determining Whether an Employment Agreement Illegally Restrains Lawful...

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In a previous article that we published in October 2023, we detailed California’s forthcoming amendment to its noncompete law. That law, which is codified in California Business & Professions Code sections 16600 et seq, voids...more

Clark Hill PLC

DraftKings Case Shows Limited Reach of California’s Noncompete Ban

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It is no secret that California is hostile to noncompetition (noncompete) agreements. As of Jan. 1, 2024, California employers cannot enforce nor enter into noncompete provisions or agreements with an employee or prospective...more

Sunstein LLP

Enforcing a Non-Compete Against a Former Employee in California

Sunstein LLP on

What happens when a senior executive leaves a Massachusetts company, with which he has a non-compete, to go to work for a competitor in California, which forbids most non-competes? This question was front and center when...more

Allen Matkins

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

Allen Matkins on

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

CDF Labor Law LLP

[Webinar] The Californication of Non-Compete Laws – Recent Changes That Impact All Employers Across The United States - June 26th,...

CDF Labor Law LLP on

Join us for an informative webinar on the latest developments in the non-compete agreement arena with two members of CDF’s Unfair Competition & Trade Secret Practice Group: Dan M. Forman, Chair, and Ashley A. Halberda who...more

Proskauer Rose LLP

Future Not Looking Bright For California Employee Nonsolicits

Proskauer Rose LLP on

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

Stokes Wagner

Employers Must Notify California Employees of Void Non-Competes

Stokes Wagner on

California is not spreading the love to employers this Valentine’s Day. Employers’ deadline to give their California employees a notice that any non-compete agreements are void was February 14, 2024. Employers who fail to...more

Akerman LLP - HR Defense

Non-Compete Clarity: California Employers Must Provide Notice of Non-Competes to Employees By February 14, 2024

Akerman LLP - HR Defense on

New California laws intended to strengthen the state’s long-standing ban on non-competition agreements are set to create immediate headaches for employers in the state that have, or plan to, impose non-compete or non-solicit...more

Wilson Sonsini Goodrich & Rosati

California Extends Prohibition on Noncompete Agreements

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California law famously bans employee noncompetition agreements, under a statute enacted in 1872. As of January 1, 2024, new amendments to this age-old statute provide clarity about what is—and is not—enforceable....more

Morgan Lewis - ML Benefits

Reminder: California Noncompete Deadline Is February 14

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Besides being Valentine’s Day, February 14, 2024 is an important day for employers with any California employees: It is the last day for employers to notify California employees (including former employees who were employed...more

Miller Nash LLP

California Employees Must Receive Notice of Noncompete Invalidity by February 14

Miller Nash LLP on

Your normal Valentine’s Day to-do list may include a box of chocolates, card, or bottle of wine. This year, for employers with California employees subject to noncompete agreements, add one more task: notices of invalidity of...more

Allen Matkins

This Year Some Employees Will Be Receiving More Than A Valentine's Day Card

Allen Matkins on

Last year, the California legislature enacted AB 1075 (Bauer-Kahan) which declares it to be unlawful "to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that...more

Akin Gump Strauss Hauer & Feld LLP

New California Laws Provide Private Right of Action for Unlawful Restrictive Covenants; Require Notice to Affected Employees by...

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Key Points - New California statutes provide California employees with private right of action against firms that promulgate, maintain or try to enforce unlawful restrictive covenants. By February 14, 2024, firms must...more

Quarles & Brady LLP

Employers Have New Obligations Under Statute Regulating Noncompete Agreements

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As discussed in a prior alert, newly-enacted California laws governing noncompete agreements require employer action by February 14, 2024. This alert explains the purpose of the new laws, what the notification requirement...more

Ward and Smith, P.A.

The Continued Attack on Non-Competes

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Under California law, it has been the longstanding policy that non-compete restrictions are generally void and unenforceable, subject to narrow exceptions.  At the end of 2023, California signed two more bills into laws to...more

White & Case LLP

Notice May Be Required for California Employees Subject to Non-Competes

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California passed new laws reiterating its prohibition on employment-related non-competition obligations. Assembly Bill 1076, effective January 1, 2024, provides that it is unlawful to include noncompete clauses in employment...more

Stradling Yocca Carlson & Rauth

On The Horizon: Notices Regarding Void Non-Compete Agreements Must Go Out By February 14th

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Effective January 1, 2024, California made several adjustments to its non-competition laws to strengthen its general prohibition on such agreements.  Those adjustments included: making non-competition agreements unenforceable...more

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