Non-Compete Agreements, CA Supreme Court

Future Not Looking Bright For California Employee Nonsolicits

Proskauer Rose LLP on 2/27/2024

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

California Employers Face Feb. 14 Deadline and Tighter Non-Compete Prohibitions

ArentFox Schiff on 1/26/2024

California has long had the most restrictive laws against employee non-compete agreements. Effective January 1, two new legislative bills, Senate Bill 699 and Assembly Bill 1076, tightened California’s restrictions even...more

Are You Ready? Notice to Employees of Void CA Non-Competes Required by February 14, 2024

Faegre Drinker Biddle & Reath LLP on 1/24/2024

California law has for many years treated agreements that restrain one from engaging in a lawful profession, trade, or business as void and unenforceable, unless an exception applies. This applies to most non-compete and...more

Employment Flash - November 2023

Skadden, Arps, Slate, Meagher & Flom LLP on 11/16/2023

...NLRB Issues Final Rule on ‘Joint Employer’ Standard On - October 26, 2023, the National Labor Relations Board (NLRB) issued a final rule titled “Standard for Determining Joint Employer Status,” which rescinds and...more

California's New Nationwide Focus on Noncompetition Agreements

Holland & Knight LLP on 10/5/2023

For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more

Do as I Say And as I Do – California Amends Its Non-Compete Law

Mintz - Employment Viewpoints on 9/19/2023

On the heels of the New York and FTC non-competition legislation (discussed here and here), Governor Newsom recently signed an amendment to California’s non-compete ban into law. The amendment, S.B. 699, takes effect on...more

The Top 17 Workplace Law Stories from May 2022

Fisher Phillips on 6/2/2022

It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Breaching A Contract May Be Wrong But It Isn't Independently Wrongful

Allen Matkins on 11/11/2021

In 1995, the California Supreme Court held that a plaintiff pursuing a claim for interference with a prospective contractual or economic relationship had to plead that the defendant's conduct was wrongful. Della Penna v....more

July 2021: The Top 14 Labor And Employment Law Stories

Fisher Phillips on 8/4/2021

It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Ixchel Pharma, LLC v. Biogen, Inc.: Opening the Door to Non-Compete Agreements Between Businesses in California

Faegre Drinker Biddle & Reath LLP on 12/11/2020

In a recent decision, Ixchel Pharma, LLC v. Biogen, Inc., the Supreme Court of California opened the door for some restrictive covenants between commercial enterprises, but it left alone California law generally prohibiting...more

Ixchel v. Biogen: California B2B Noncompetes Do Not Per Se Violate B&P Section 16600, and Are Instead Subject to Rule of Reason

Sheppard Mullin Richter & Hampton LLP on 8/20/2020

Business-to-business contracts often concern trade secrets. Contracts such as NDAs, joint development agreements, license agreements, vendor agreements, and other commercial agreements commonly contain restrictive covenants...more

California Supreme Court Clarifies Pleading Requirements for Claims of Tortious Interference with At-Will Contracts and Adopts...

Seyfarth Shaw LLP on 8/19/2020

Called upon by the Ninth Circuit in Ixchel Pharma, LLC v. Biogen, Inc. to answer two key questions concerning the validity of a settlement provision requiring a party’s termination of a collaboration agreement with a...more

Economic Tort of Tortious Interference With At-Will Contractual Relations Requires Allegation of Independent Wrongful Act

Payne & Fears on 8/18/2020

In Ixchel Pharma, LLC v. Biogen, Inc., S256927, 2020 WL 4432623 (Cal. Aug. 3, 2020) (“Ixchel Pharma”), the Supreme Court of California clarified two points: (1) that to state a claim for interference with an at-will contract...more

California Supreme Court Holds Law Restricting Employment Non-Competes Also Applies to Businesses Contracts Under Antitrust Real...

Pillsbury Winthrop Shaw Pittman LLP on 8/18/2020

In Ixchel Pharma, LLC v. Biogen, Inc., the court addresses “an important question of California law, potentially affecting all contracts in California that in some way restrain a contracting party from engaging in a...more

The Rule Of Reasonableness: Non-Compete Provisions In California Business Contracts

Weintraub Tobin on 8/17/2020

The California Supreme Court in the 2008 case, Edwards v. Arthur Andersen LLP, ruled that a provision in an employment agreement that prevented an employee from competing with his former employer following the termination of...more

California Supreme Court Applies Rule of Reason Test for “Business Only” Restrictive Covenants

Epstein Becker & Green on 8/14/2020

In Ixchel Pharma, LLC v. Biogen, Inc., 20 Cal. Daily Op. Serv. 7729, __ P.3d __(August 3, 2020), the California Supreme Court made it easier for businesses to enforce restrictive covenants against other businesses. This...more

California Supreme Court Clarifies Standards For B2B Non-Competition Agreements And Disputes In California

Morrison & Foerster LLP on 8/10/2020

This week, on August 3, 2020, the California Supreme Court issued its opinion in Ixchel Pharma, LLC v. Biogen, Inc., which resolved two questions regarding the standards to be applied for non-competition agreements and...more

The California Supreme Court Clarifies Section 16600 as Applied to Business Contracts and Holds That an Independently Wrongful Act...

Orrick - Trade Secrets Group on 8/7/2020

The most powerful tool capable of invalidating competitive restraints under California law is Business and Professions Code section 16600. That statute states that “[e]very contract by which anyone is restrained from...more

California Employment Law Notes - March 2020

Proskauer - California Employment Law on 3/17/2020

Time Spent By Employees In Exit Searches Is Compensable - Frlekin v. Apple Inc., 2020 WL 727813 (Cal. S. Ct. 2020) - In this opinion, the California Supreme Court answered a question certified to it by the United...more

Employment Flash - September 2019

Skadden, Arps, Slate, Meagher & Flom LLP on 9/26/2019

This edition of Employment Flash looks at a series of recent NLRB decisions, many of which apply to all employers, not just those with unionized employees. We also discuss other U.S. federal and state labor and...more

AMN Healthcare’s impact on the enforceability of non-solicitation provisions in California raises two new unanswered questions

Hahn Loeser & Parks LLP on 9/12/2019

California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more

Non-Compete Agreements › CA Supreme Court