Category Archives: California

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Moving Toward a Federal-State Approach To Noncompete Regulation?

Non-compete agreements are currently exclusively regulated by a panoply of state laws. Coextensive with recent scrutiny over anti-competitive business practices relating to non-compete use, federal interest in non-compete regulation has heightened, culminating in a White House “Call to Action” urging certain state reforms. While there appears to be room for a limited level of federal … Continue Reading

California Further Restricts Employers from Trying to Enforce Non-Compete Agreements

Are you an employer based outside of California with employees who live or work in California? If so, you will want to take note of a new California Labor Code provision that becomes effective on January 1. Not surprisingly, companies headquartered outside of California generally have employment agreements that are purported to be governed by … Continue Reading

White House Call to Action to Limit Non-Competes

Earlier this year, the White House and Treasury issued reports criticizing the widespread use of non-compete agreements. They found that such agreements affect nearly one in five U.S. workers, or approximately 30 million people. Last week the White House expanded its efforts, issuing a Call to Action for states to reform and limit non-compete agreements, … Continue Reading

Netflix Responds – CA Law does not Permit Employment Contracts?

Just in late last week: Netflix counters the Fox lawsuit with a jab of its own – Netflix claims that the employment agreements that Fox utilizes and its practices concerning those term agreements run afoul of California law. Since neither former Fox employee was bound for more than 7 years under an employment agreement (and … Continue Reading

Does California Code of Civil Procedure 2019.210 Apply to the Defend Trade Secrets Act?

Trade secret litigators in California are familiar with California Code of Civil Procedure section 2019.210. That section requires plaintiffs to identify their alleged trade secrets with “reasonable particularity.” Critically, the section requires that plaintiffs do so “before commencing discovery relating to the trade secret.” Section 2019.210 has long been an important weapon in the arsenal … Continue Reading

Not Quite Fun in the Sun: What Happens to Accrued Vacation Leave When the Employment Relationship Ends

Part Two: State-Specific Provisions and Employer Policies for Vacation Payout at the Conclusion of Employment In states that allow “use-it-or-lose-it” vacation leave policies when employment ends, the details of your policy are key. This second installment of the two-part series on vacation leave payout explores the state-specific provisions for leave forfeiture, and the importance of an … Continue Reading

Not Quite Fun in the Sun: What Happens to Accrued Vacation Leave When the Employment Relationship Ends

Part One: Mandatory Leave Payout and Its Relationship to Traditional “Use-It-Or-Lose-It” Policies Bob decides the grass is in fact greener at another company, and resigns. Carla is fired for insubordination. Dan wins the lottery and quits without notice. Each now is demanding payment for accrued but unused paid vacation leave. While they worked for you in three different … Continue Reading

California Federal Court Finds The Computer Fraud And Abuse Act Is Not A Misappropriation Statute

Unauthorized access to electronic information can give rise to liability under The Computer Fraud and Abuse Act (the “CFAA”). In addition to state law causes of action that may be asserted, such as trade secret misappropriation, the CFAA provides a private right of action against unauthorized users who access a computer “without authorization” or who … Continue Reading

Maximizing Your California Non-Compete’s Chance of Survival: California Federal Courts and Forum Selection Clauses

California’s state and federal courts are loath to enforce choice of law provisions allowing the law of an out-of-state employer’s home state to control the validity of a California employee’s non-compete. But California’s federal courts will uphold forum selection clauses stipulating that the home state must make the choice of law determination, dramatically increasing the … Continue Reading

Social Media and Protecting Trade Secrets – California Pitfalls

Many companies in today’s world encourage (and even require) their employee’s to use social media in promoting the company’s business and seeking customers. What happens when the employee leaves? Can the company require that the employee not use any of the information they publicly used during their employment?  First question – who owns the social … Continue Reading

Employers Contemplating A Misappropriation of Trade Secrets Should Think Twice in California

Employers Contemplating A Misappropriation of Trade Secrets Claim Without Evidence of Actual or Threatened Use Should Think Twice In California In California, a departing employee’s mere possession of trade secrets is an insufficient basis upon which to pursue a claim for trade secrets misappropriation. In addition to possession, a former employer must demonstrate actual use or … Continue Reading