Non-compete Provisions in Employment Agreements considered Void
The California Supreme Court case, Edwards v. Arthur Anderson (Cal. August 2008) clarifies California state courtsí position on non-solicitation of customer covenants in an employment agreement. The Edwards decision now makes clear that a non-solicitation of customersí provision of any form between an employer and an employee in California is void. Case law in California suggests that even requiring an employee to sign an agreement with a void restrictive provision may create a claim for unfair competition.Therefore, it is recommended that California employers remove any non-solicit of customers or non-compete provisions from their employment agreements.
If you have any questions regarding this decision or other issues related to covenants not to compete or non-solicitation agreements, please contact Debra Reilly at 858-759-4303.