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Tag Archives: Non-Compete

Co-Worker Non-Solicitation Provisions in Jeopardy?

Posted in Employment Contracts and Agreements, Labor Law, Trade Secrets and Competition

For years, California courts have recognized the right of employers to use non-solicitation provisions in employment agreements to prevent employees from “soliciting” their coworkers to join them at a new employer.  For instance, in 1985, a California appellate court in Loral Corp v. Moyes, 174 Cal.App.3d 268 (1985), held that a non-solicitation of fellow employees… Continue Reading

New York Times Article: Noncompete Clauses Increasingly Pop Up in Array of Jobs

Posted in Trade Secrets and Competition

What do yoga instructors, event planners and exterminators have in common?  These are fields that are reportedly witnessing an increase in the use of noncompete provisions in employment agreements.  Details of this increase in the use of noncompete provisions were reported in a New York Times article this Sunday.  Click here to view article. While… Continue Reading

Another Non-Compete Held Unenforceable

Posted in Trade Secrets and Competition

Under California law, non-compete provisions with an employee are generally unenforceable.  Statutory exceptions to this rule include the seller of a business’s goodwill or a membership interest in an LLC.  Courts have also recognized a judicial exception to this rule: where the non-compete is necessary to protect an employer’s trade secret information.  This judicial exception… Continue Reading

Government Targets eBay’s Alleged “No Hire” Agreements

Posted in Trade Secrets and Competition

One focus of this blog is how an employer’s use of non-compete agreements often runs afoul of California’s Business and Professions Code section 16600. Generally, the employer finds that its “non-compete” agreement will be held unenforceable by a court should it seek to enforce one against a former employee. But what can happen when one… Continue Reading

Another Door Closes on Non-Compete Agreements

Posted in Employment Contracts and Agreements, Trade Secrets and Competition

By:       James Kachmar Readers of this blog will note that we frequently remind them that California law generally prohibits non-compete agreements. There are very limited exceptions to this general rule, one being that the seller of goodwill in a business can be bound by a valid non-compete agreement to protect the goodwill that is being purchased. Sometimes,… Continue Reading

Non-Compete Agreements Were Unenforceable: Asset Mktg. Systems, Inc. v. Gagnon (9th Cir. 2008)

Posted in Trade Secrets and Competition

Kevin Gagnon, doing business as “Mister Computer,” alleged that his former customer, Asset Marketing Systems (AMS), infringed his copyright in six computer programs that he wrote for AMS by continuing to use and modify them without his consent and that AMS misappropriated trade secrets contained in the programs’ source code. After AMS terminated its contract… Continue Reading