Top

Calif. Court Limits Use of Employee Nonsolicitation Agreements

November 21, 2018

Via: SHRM
Category:

It is well-established that restrictive covenants, such as noncompetes, are prohibited by statute in California. Since the decision by the California Supreme Court that partial restraints like customer nonsolicitation clauses were void under Business and Professions Code Section 16600, the courts have been strictly interpreting any covenant that impinges on employment opportunities.

For example, over recent years, employers have come to understand that no-hire agreements are ordinarily off limits. However, the California Supreme Court in Edwards v. Arthur Andersen, LLP expressly declined to consider whether employee nonsolicitation provisions were void.

Read More on SHRM