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Jeffrey S. Klein and Nicholas J. Pappas, partners at Weil, Gotshal & Manges, write that the California Supreme Court recently issued a decision rejecting the so-called "narrow-restraint" exception used by courts to find certain noncompetition covenants valid and enforceable in the state of California. Previously, employers had achieved some success in arguing that where a noncompetition agreement did not completely prohibit post-termination competition by an employee, California courts were permitted to enforce the agreement under such an exception.
October 06, 2008 at 12:00 AM
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