Legal Alert: Beware of Noncompete Agreements for California Employees


California has long upheld the principle that it wants to encourage fair competition. In furthering this principle the California Supreme Court recently tolled the death knell for noncompete agreements in employment contracts and held, "this court generally condemns noncompetition agreements." In Edwards v. Arthur Andersen, the court also makes clear that nonsolicitation agreements as to the company's clients or customers, will be considered to be illegal noncompete agreements, unless the nonsolicitation agreement is necessary to protect a trade secret or confidential proprietary information.

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