Calif. Ruling Shows Issues With Overbroad Employment Pacts

Law360 (February 13, 2020, 2:15 PM EST) -- The Wrap News Inc. v. The Information Inc.,[1] a case recently decided by the Los Angeles Superior Court, is a good object lesson for California employers seeking to prevent employees from using confidential information to compete with their business.

According to court documents, a digital news organization, The Wrap News, based in Santa Monica, California, hired Matt Pressberg as a reporter in November 2016. The Wrap had Pressberg sign its standard employment agreement, which had a two-year term and stated that during the term Pressberg "shall not be employed by or otherwise engage in or be interested in any other business," with...

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