The Associated Press reports that California continues to make news in the area of employee rights – this time in the area of non-competition agreements:
"Companies operating in California cannot make employees sign contracts promising not to work for a competitor, a state appellate court ruled.
Wednesday’s decision in Raymond Edwards II v. Arthur Andersen LLP, No. B178246, rejects 20 years of federal case law that had held the non-competition agreements were legal if they were crafted narrowly enough that an employee who left a company still could work in his or her profession.
A federal appellate court "misapplied" California law on the issue, said the decision by the state’s 2nd District Court of Appeal.
"Noncompetition agreements burden a terminated employee with the task of guessing, at his or her peril, whether a court might find particular restrictions sufficiently narrow or overly broad," the ruling said."
Link: Calif. Court Finds Employees Can’t Be Forced to Sign Noncompetition Agreements.
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