The United States Court of Appeals for the Federal Circuit recently issued a decision in Whitewater West Industries, Ltd. v. Alleshouse, Nos. 19-01852, 19-02323 (Fed. Cir. Nov. 19, 2020), invalidating a non-compete agreement containing an assignment provision, which required a former employee to assign post-employment inventions to his previous employer. This opinion clarifies the limits of assignment provisions and confirms that such provisions cannot be drafted to require post-employment assignments in light of California’s broad ban on agreements that prohibit an employee from engaging in his or her profession.
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