Companies operating in California cannot make employees sign contracts promising not to work for a competitor, a state appellate court ruled. Wednesday's decision rejects 20 years of federal case law that had held the non-competition agreements were legal if they were crafted narrowly enough that an employee who left a company still could work in his or her profession. A federal appellate court "misapplied" California law on the issue, said the decision by California's 2nd District Court of Appeal.
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Calif. Court Finds Employees Can't Be Forced to Sign Noncompetition Agreements
The Associated Press
September 1, 2006
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