Comedy Club V. Improv West: Calif. Noncompetes

Law360, New York (August 14, 2009, 12:42 PM EDT) -- In August 2008, in Edwards v. Arthur Andersen, 44 Cal. 4th 937 (2008), the California Supreme Court resolved a long-simmering dispute about the nature and extent of lawful employee noncompetition agreements under California law.

In a unanimous decision, the court held that noncompetition agreements between an employer and employee that even just “partially” or “narrowly” restrict an employee’s ability to practice a trade or profession were invalid under California’s statutory prohibition for noncompetition agreements in Business & Professions Code section 16600.

In doing so, the court...
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