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Non-Competition, Non-Solicitation and Non-Disclosure Agreements
When negotiating non-competition, non-solicitation and non-disclosure agreements, there are many issues that should be taken into consideration, regardless of whether counsel is given to the employer or employee. For example, is the agreement or restrictive covenant necessary to protect the employer's legitimate business interests? Is the agreement supported by adequate consideration? Is the restrictive covenant reasonably limited as to time and geographical location in which the conduct is prohibited? What law will apply to the agreement?
Employers throughout the country are expanding their businesses into new jurisdictions, and practitioners must remain current with the laws of the jurisdiction in which the businesses operate and, more importantly, the jurisdictions covered by the employment agreement. Below is a discussion of employment statutes, recent case law developments in representative jurisdictions and some general considerations for practitioners when negotiating or seeking to enforce non-competition, non-solicitation and non-disclosure agreements in various states.
California
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