On September 1, 2023, California Governor Gavin Newsom signed Senate Bill 699, which amends California Business & Professions Code Section 16600 to prohibit an employer from entering into or attempting to enforce a non-compete agreement regardless of whether the contract was signed outside of California. The law goes into effect on January 1, 2024. Previously, … Continue Reading
Labor Co-Chair Tony Oncidi is extensively quoted by The Hollywood Reporter — he provides cogent insights about the Federal Trade Commission’s newly proposed rules that would ban most noncompetes nationwide. We invite you to read the full article here.… Continue Reading
We invite you to review our newly-posted March 2022 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: California Relaxes Standard For Proving Whistleblower Claims At-Will Employee Can Proceed With Labor Code § 970 Claim Doctor Proved Age/Race/Gender Discrimination Former Owner of Company Is … Continue Reading
Blue Mountain Enterprises, LLC v. Owen, 74 Cal. App. 5th 537 (2022) Gregory S. Owen transferred his ownership interest in several real estate and construction-related firms to Blue Mountain Enterprises, LLC, as part of a joint venture with Acolyte Limited. Owen became Blue Mountain’s CEO and he agreed to a post-employment non-solicitation provision, which precluded … Continue Reading
Despite California’s general hostility towards post-termination restrictive covenants, the California Court of Appeal, in a recently published opinion, Blue Mountain Enters., LLC v. Owen, 74 Cal.App.5th 537 (1st Dist. Jan. 10, 2022), affirmed that a post-termination customer non-solicitation agreement was enforceable under California Business & Professions Code § 16601. Under most circumstances, contractual provisions that … Continue Reading
Despite California’s prohibition against non-compete agreements, a federal court in the Eastern District of California recently ruled that a California resident may be subject to the non-compete covenant in his employment agreement due to a provision in the agreement identifying Indiana as the parties’ choice of forum and that state’s law as the parties’ choice … Continue Reading
Wanke, Indus., Commercial, Residential, Inc. v. Superior Court, 209 Cal. App. 4th 1151 (2012) In an underlying lawsuit, Wanke sued its former employees Scott Keck and Jacob Bozarth for misappropriation of trade secrets, among other things. That lawsuit was settled, and the parties agreed to a stipulated injunction pursuant to which Keck, Bozarth and their … Continue Reading
Fillpoint, LLC v. Maas, WL 3631266 (Cal. Ct. App. 2012) Michael Maas sold his stock in Crave Entertainment Group, Inc. to Handleman Company and signed a stock purchase agreement that contained a three-year covenant not to compete. Maas signed a separate employment agreement with Crave that contained a one-year covenant not to compete, which would … Continue Reading
We invite you to review our newly posted September 2011 California Employment Law Notes — a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Employee Who Provided False SSN and Other Information Was Barred from Suing for Disability Discrimination Employer Did Not Violate CFRA by Transferring Employee upon Her … Continue Reading
NewLife Sciences, Inc. v. Weinstock, 197 Cal. App. 4th 676 (2011) NewLife terminated the employment of Ronald Weinstock, the purported inventor of a Therapeutic Magnetic Resonance Device (“TMRD”), which NewLife had purchased approximately one year before the termination. In connection with its purchase of the TMRD, NewLife had obtained a non-compete covenant, which prohibited Weinstock … Continue Reading
Silguero v. Creteguard, Inc., 187 Cal. App. 4th 60 (2010) Shortly after Creteguard hired Rosemary Silguero, her former employer (FST) contacted Creteguard and “requested the cooperation and participation of [Creteguard] in enforcing the confidentiality agreement [between Silguero and FST], including those provisions prohibiting Silguero from all sales activities for 18 months following Silguero’s departure or … Continue Reading
Asset Marketing Systems, Inc. v. Gagnon, 542 F.3d 748 (9th Cir. 2008) 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 … Continue Reading
Edwards v. Arthur Andersen LLP, 44 Cal. 4th 937 (2008) CPA Raymond Edwards II was hired in 1997 as a tax manager for the Los Angeles office of the now defunct accounting firm Arthur Andersen LLP (“Andersen”). As a condition of his employment, Edwards was required to execute a noncompetition agreement that prohibited his (1) … Continue Reading
Alliant Ins. Services, Inc. v. Gaddy, 159 Cal. App. 4th 1292 (2008) Alliant Insurance Services purchased a competing insurance brokerage company from G. Scott Gaddy for $4.1 million and then employed him under a senior management agreement. Both the purchase and employment agreements contained covenants whereby Gaddy agreed not to compete with Alliant or to … Continue Reading
Huong Que, Inc. v. Luu, 150 Cal. App. 4th 400 (2007) After Mui Luu and Cu Tu Nguyen sold Huong Que, Inc. (the “most well known, recognized and trusted brand name for traditional style Vietnamese calendars”) to Con Tu, they agreed to remain employed as the company’s “managing agents.” The sales agreement contained a covenant … Continue Reading
Edwards v. Arthur Andersen LLP, 142 Cal. App. 4th 603 (2006) Raymond Edwards II, the former tax manager for the Los Angeles office of the now defunct accounting firm Arthur Andersen LLP, had executed a non-competition agreement that prohibited him from performing professional services for 18 months post-employment for any client whose account he had … Continue Reading
The Estée Lauder Companies Inc. v. Batra, 430 F. Supp. 2d 158 (S.D.N.Y. 2006) While working as Global General Brand Manager for Estée Lauder, Shashi Batra (a resident of San Francisco) signed a non-compete agreement that prohibited him from competing with the company anywhere in the world for a period of 12 months after his … Continue Reading
Biosense Webster, Inc. v. Superior Court, 135 Cal. App. 4th 827 (2006) Biosense, a manufacturer and seller of electrophysiology catheters and anatomical mapping devices, had its employees sign non-competition agreements prohibiting them from providing services to “conflicting organizations” for 18 months after leaving Biosense. After three of its former employees went to work for St. … Continue Reading
Bennett v. Medtronic, Inc., 285 F.3d 801 (9th Cir. 2002) Medtronic, Inc. sued three of its former California employees and their new employer, NuVasive, in Tennessee following the employees’ resignation from Medtronic and acceptance of employment with NuVasive, one of Medtronic’s competitors in the business of designing and manufacturing spinal surgery devices. Among other things, … Continue Reading
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