Business Law
Business Law News 2018, ISSUE 1
Content
- Bln Editorial Board: Message from the Editor
- Business Law News Editorial Team
- Business Law News Table of Contents
- Enforcing Arbitration Agreements in Bankruptcy
- Executive Committee: Message from the Chair
- Executive Committee of the Business Law Section 2017-2018
- MCLE Article: the Proposed Rules of Professional Conduct
- Standing Committee Officers of the Business Law Section 2017-2018
- Structuring Enforceable Guaranties of California Commercial Real Estate Loans: Avoiding "Fault" and "No Fault" Sham Guaranties and Other Lender Traps
- Yolanda's, Inc. v. Kahl & Goveia Commercial Real Estate—Expanding a Creditor's Post-Judgment Examination of a Non-Debtor Third Party
- Companies Face Consequences for Unenforceable Noncompetition Clauses in California
Companies Face Consequences for Unenforceable Noncompetition Clauses in California
Justene M. Adamec
Justene Adamec has been a partner in Pumilia & Adamec LLP since 1995. Pumilia & Adamec is a Los Angeles law firm, whose clients are mid-size, closely-held companies. With almost 30 years of experience, Justene handles business litigation both in the courts and before arbitration panels. Justene is currently co-chair of the Business Litigation Committee for the California Lawyers Association. She has published several articles on issues that affect businesses.
California has a strong public policy in favor of competition. With very narrow exceptions, any contract provision that restrains competition after an employee leaves the employer is unenforceable.1 Companies can be held liable in tort for inserting an unenforceable noncompetition clause in an otherwise enforceable agreement. This article summarizes the basic rules on enforceability, discuss the cases that impose liability, and provide guidelines for drafting noncompetition clauses within the exceptions.