Non-Competes + Unfair Competition

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In October 2023, California’s Governor signed Assembly Bill (AB) 1076 which added the new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions already are void under Business & Professions Code §16600.

Under AB 1076, employers must notify current employees and former employees (employed after January…

An arbitration clause in a consumer agreement was enforceable, including the class action waiver, despite four supposedly one-sided arbitration provisions in the agreement, the California Supreme Court has held. Sanchez v. Valencia Holding Co., LLC, No. S199119 (Aug. 3, 2015). The much-anticipated decision has significant implications for arbitration agreements between employers and employees.
Continue Reading California Supreme Court: Federal Arbitration Act Preempts Plaintiff’s State Rights

A divided Ninth Circuit court ruled this week that California’s protections against contracts restraining employment were not explicitly limited to non-compete agreements.  Rather, the law can apply to any type of employment agreement, including settlement agreements.

In Donald Golden v. California Emergency Physicians Medical Group et al., case number 12-16514, the employer and employee entered into a proposed settlement agreement.  The no-employment provision in the settlement agreement states that the employee will not continue to be employed at any of the employer’s current facilities, or at any other facility with which the employer may contract in the future.  The employee appealed and sought to “un-do” the settlement agreement based on this clause.
Continue Reading California Court Rules On Protections Against Contracts: Why You Should Review Your Form Agreements Today