In novel and important decision, DePy Synthes Sales v. Howmedica Ostionic’s, Ninth Cir. Case No. 21-55126, on March 14, 2022, the Ninth Circuit Court of Appeals upheld the lower court’s decisions to prevent a former employer from enforcing non-California forum selection clauses and a non-compete against its former California employee.
Waber, the employee at issue, had entered into an employment contract with a medical device company that included a one-year non-compete as well as forum-selection and choice-of-law clauses requiring adjudication of disputes in New Jersey under New Jersey law. Waber left and obtained similar employment with a new employer serving the same geographic area of California. After the former employer threatened legal action, Waber sent the former employer notice that the employment contract was void under California Labor Code § 925 and shortly thereafter sued the former employer for declaratory relief -- to enjoin enforcement of the non-compete and to prevent a claim of interference with contract against the new employer.
California Labor Code § 925 states that California employment agreements are voidable by an employee if the agreement requires the employee to adjudicate disputes outside California or deprive an employee of protection afforded by California law, unless the employee is represented by counsel while negotiating the contract.
The District Court agreed and granted Waber’s requests and refused to transfer the case to New Jersey.
On...
Read Full Story:
https://www.jdsupra.com/legalnews/ninth-circuit-rejects-enforcement-of-1689640/