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.
September 01, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Companies operating in California cannot make employees sign contracts promising not to work for a competitor, a state appellate court ruled.
Wednesday’s decision in Raymond Edwards II v. Arthur Andersen LLP, No. B178246, 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.
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