What Happens at Work Stays at Work – The California Employer’s Approach To A National Program for Restrictive Covenants and Trade Secret Protection

In This Presentation:

The California Landscape: A Refresher

- Post-Termination Non-Competes

– Unenforceable under Bus. & Prof. Code §16600 and Edwards v. Arthur Andersen

– Other jurisdictions may allow if reasonably necessary to protect legitimate business interests and if reasonable in time and geographical scope

– Designating another state's law as controlling will not override CA public policy

– The “race to the courthouse”

- Excerpt from Post-Termination Non-Competes:

Non-competes may be enforceable IF:

– Qualifies under sale or dissolution of business ownership exception

– During employment

– For non-solicitation of customers and employees if necessary to protect trade secrets

..Caution: Edwards v. Arthur Anderson did not rule on the “trade secret exception”; subsequent CA and federal courts in flux

– Contained in an ERISA plan (preemption)

– Garden Leave -- not yet tested in CA

– Legitimate forum selection and choice of law clauses.

Please see full presentation below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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