Home -> Law Blog Directory -> Intellectual Property Law Blogs -> The Trade Secrets Vault

Intellectual Property Law

: The Trade Secrets Vault

Calif. High Court Brightens Rule Against Non-Compete Pacts

By Cheryl Miller In a ruling long awaited by the employment law sector, the California Supreme Court on Thursday effectively rejected the use of most non-competition agreements in California (pdf). In Edwards v. Arthur Andersen, S147190, the unanimous court held that a state statute with roots in 19th century laws gives California workers great freedom to switch jobs, to compete against old employers and to solicit former clients. "In sum, following the Legislature, this court generally condemns noncompetition agreements," Justice Ming Chin wrote. "Under the statute's plain meaning, therefore, an employer cannot by contract restrain a former employee from engaging in his or her profession, trade, or business unless the agreement falls within one of the exceptions to the rule."

Full post as published by The Trade Secrets Vault on August 11, 2008 (boomark / email).