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California has banned noncompetes since 1872. It has also banned customer nonsolicitation agreements since 2009. Since 2018, there has been some question about whether California also bans no-recruit agreements. And since 2020, there has been a growing fear that California law also bans broad confidentiality agreements. But whether you agree with California’s hostility toward restrictive covenants or not, California passed two laws that make it impossible to continue to ignore California’s policy. California’s new laws expand the scope of the anti-restrictive covenant policy, prioritize California’s policy over all other states’ policies, purports to create a safe-haven for employees with otherwise-lawful and enforceable contracts to flee to California to avoid their lawful obligations, and requires employers to notify their California employees that their restrictive covenants are void. Which companies need to comply with these new laws, what do they need to do, and how can out-of-state companies avoid the impact these new laws?
During this discussion, registrants will learn:
- How California’s current law changed, and what other recent developments do companies need to know about (15 minutes);
- Practical implications of California’s changes: what agreements are at risk, and who will be affected and how (20 minutes); and
- Strategies for protecting trade secrets, customer relationships, and workforce integrity in light of California’s changes, with a focus on what to do about existing restrictive covenants, how to draft restrictive covenants going forward, alternatives to traditional restrictive covenants, and other strategies to consider (25 minutes).
Who Should Attend: Any lawyer or human resources personnel that assists companies or individuals in evaluating, enforcing, and defending against noncompetes and other restrictive covenants, anyone involved in the hiring of employees, and anyone else responsible for an organization’s internal hiring policies or lobbying on related issues
Program Level: Update
Advanced Preparation: None
Beck Reed Riden LLP
Nicole Corvini Daly
Beck Reed Riden LLP
Seyfarth Shaw LLP
Sabrina L. Shadi