Tag Archives: california
In a decision that could affect Massachusetts companies with employees in California, a California appellate court voided a non-solicitation clause in former employees' agreements.
It is well known that under California law, post-employment non-competition agreements are unenforceable, except in very limited circumstances. California courts have been slightly more forgiving of non-solicitation provisions, both as to employees and customers. Employee non-solicitation provisions occasionally have been upheld when tested against a reasonableness standard.… More
On September 7, 2018, the Massachusetts Supreme Judicial Court refused to enforce a non-competition and non-solicitation agreement between a Massachusetts company and its California-based former employee who joined the employer's competitor in California. The SJC reached this decision, in Oxford Global Resources v. Hernandez, even though the agreement was expressly governed by Massachusetts law and designated Massachusetts as the forum for all disputes concerning the agreement.… More
Recent Events Provide More Fodder for Debate About Noncompetes in Massachusetts
The blogosphere once again is abuzz with continued discussion of whether the enforceability of noncompete clauses in Massachusetts places the state at a competitive disadvantage with California generally and Silicon Valley in particular. The latest causes: a court decision from California and an academic paper from Canada.
A decision earlier this month from California's highest court makes clear, after some years of simmering debate, that noncompetition agreements are invalid under California law and that even a narrowly drafted prohibition will not be upheld except in a sale of business context.… More