Noncompetes Are D.O.A. In Calif.

Law360, New York (August 28, 2008, 12:00 AM EDT) -- In a significant new opinion with far-reaching national implications, the California Supreme Court has expressly parted company with the U.S. Court of Appeals for the 9th Circuit and other courts by rejecting the so-called narrow restraint exception to the broad statutory prohibition against noncompetes that exists under California law (Cal. Bus. & Prof. Code § 16600).

Further, the Supreme Court determined that an employer’s use of even an unenforceable noncompete may give rise to a tort claim resulting from interference with a former employee’s prospective economic...
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