Non-solicitation Provision Overturned in California

It is common knowledge that California generally prohibits post-employment non-compete provisions. However, people know far less about law pertaining to post-employment non-solicitation provisions. In this post, I will describe existing post-employment non-compete and non-solicitation case law. Then I will discuss a recent case that may signal a new direction. Background – Non-competition Provisions Disfavored Business and Professions Code Section 16600 is the statutory basis for California’s post-employment non-compete prohibition: Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void. Courts routinely have held that, subject to certain exceptions (such as to protect trade secrets), post-employment non-compete provisions violate Section 16600. Accordingly, California courts do not enforce such provisions. Background –…

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