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November 2019 Archives

California Court Of Appeal Creates Significant Exception To Statutory Prohibition on Covenants Not To Compete.

Business and Professions Code section 16600 contains a short and simple prohibition on covenants not to compete, providing "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." (emphasis added). In Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, 955, the California Supreme Court, acknowledging the inflexible language of Section 16600, held "[n]oncompetition agreements are invalid under section 16600 in California, even if narrowly drawn." 

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