Trade Secrets & Employee Mobility

California’s Business and Professions Code (the “Code”) has long been the nation’s strictest law on restrictive covenants, essentially prohibiting employee noncompetition agreements except in limited circumstances.

Two bills recently signed into law by Governor Gavin Newsom reiterate and broaden the state’s restrictions on employee noncompetes. SB 699, which goes into effect January 1, 2024, and which we previously wrote about here, broadens the Code’s restrictions and provides individuals with new legal remedies. AB 1076 codifies existing California case ...

This year, California was one of many states to enact legislation restricting noncompetes.  California has long had the strictest noncompete law, and employee noncompetes are already void under California Business and Professions Code § 16600 (“Section 16600”).  On September 1, 2023, California passed new legislation (“SB 699”) that further broadens Section 16600 and provides employees with new legal remedies.

The Current Law

Unless one of the narrow statutory exceptions applies, Section 16600 provides that any contract restraining a person from ...

This week, in LVRC Holdings LLC v. Brekka, the Ninth Circuit Court of Appeals issued a published opinion rejecting an employer's argument that its former employee violated the Computer Fraud and Abuse Act when he emailed company client lists and financial data to himself for personal use.

In Valentine Capital Asset Management, Inc. v. Agahi, 174 Cal. App. 4th 606, the California Court of Appeals, First District, recently looked at the issue of whether an associated person of a FINRA member could be compelled to arbitrate his company's trade secret and unfair competition claims against former employees who were also associated persons of a FINRA member.