California has done it again!
We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law, signed by Governor Newsom on September 1st, provides that any contract that is void under California law is unenforceable regardless of where and when the employee signed the contract. Under existing California law, non-compete agreements with California employees are typically void. We indicated that the likely impact is that companies may use the new law to attempt to cleanse an out of state employee from an otherwise valid non-compete agreement under another state’s law by having the employee move to California to work.
Not satisfied with this groundbreaking new law, which will likely be subject to Constitutional challenge and the ire of some California and out of state employers, the California legislature unanimously passed a second non-compete bill which Governor Newsom signed into law last week on Friday, October 13th, which is a scary additional development for employers.
The stated purpose of the new law is to codify “existing case law by specifying that the statutory provision voiding noncompete contracts is to be broadly construed to void the application of any noncompete agreement in an employment context, or any noncompete clause in an employment contract, no matter how narrowly tailored, that does not satisfy...
"Here is a follow-up video capturing a classic moment from the Xi-Trump summit: While Xi Jinping was away using the restroom, Trump casually glanced through a small notebook Xi had left on the tab...