Over three decades ago, in Loral Corp. v. Moyes, a California Court of Appeal held that employee non-solicitation agreements, which bar former employees from soliciting the employer’s existing employees, could be enforceable.  In 2008, the California Supreme Court in Edwards v. Arthur Andersen LLP held that non-competition agreements are unlawful restraints on trade and void under California Business & Professions Code section 16600 (with limited statutory exceptions), but left open whether employee non-solicitation provisions amounted to unlawful restraints on trade.  But recently, in a span of just months, two different courts in California have ruled that employee non-solicitation provisions are invalid under section 16600.

Continue Reading Rulings Question the Enforceability of Employee Non-Solicitation Covenants in California

On October 1, 2018, the Massachusetts Noncompetition Agreement Act (the “Act”) came into effect, creating several new requirements for noncompetition agreements between employers and service providers based in Massachusetts. The new law does not impact agreements entered into before October 1; however, going forward, employers should evaluate when to seek a noncompetition agreement from a service provider and should update any form agreements to comply with the Act’s requirements. In this post, we highlight five considerations to help guide employers as they revisit their practices for Massachusetts workers.

Continue Reading New Rules for Noncompetition Agreements in Massachusetts

In a recent Delaware Chancery Court case, the court declined to grant a preliminary injunction to enforce a noncompetition covenant against a California resident and former employee, finding the covenant would be unenforceable under California law, despite an explicit choice of law provision in the relevant contract designating Delaware law as the governing law of