Enforcing Your Non-Compete Agreements

With a recent ruling from the California Supreme Court, companies across the nation are taking another look at their non-compete agreements with their employees. The Court upheld a 9th Circuit Court of Appeals decision in the case of Edwards v. Arthur Andersen, ruling that the non-compete agreement at the heart of the case—prohibiting Edwards from working for or soliciting Arthur Andersen clients for limited periods after his employment ended—was void. In its ruling, the Court emphasized California’s strong public policy favoring open competition and employee mobility, and determined that non-competition agreements are permissible only if they fit within one of the statutory exceptions of California Business and Professions Code Section 16600, which states: "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." Those exceptions relate to the sale or dissolution of c... [Read Full Article]