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Letter to Leaders & Swenson Insights

Non Competition Agreements Really Unenforceable

The reason I discourage Non-Competes is that the courts change the covenants so frequently, there’s no real way to have a solid template to develop one.

Now comes the latest California Supreme Court ruling, which has established a ‘bright line’ rule in the case of Edwards v. Arthur Andersen. The ruled on August 7 that California employers cannot enforce agreements limiting competition by former employees, except within very narrow statutory exceptions.

If you really believe you need a Non-Compete Agreement for your employees, please consult your attorney. And read this excellent article from Cooley Godward & Kronish LLP.

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