labor lawAdivision of labor law center

Nationwide employers should note that both federal and state courts in California will now throw out almost all noncompetition agreements. California has one of the most restrictive laws regarding noncompetition agreements. In fact, such agreements are almost always unenforceable in the state.

California law specifically requires that every individual shall retain the right to pursue any lawful employment opportunity.

Recently, Edwards v. Arthur Andersen upheld that principle. A tax manager for Arthur Anderson LLP in Los Angeles, Raymond Edwards signed a noncompete agreement in 1997.

The agreement specifically noted that  Edwards would not work directly for any of his Arthur Anderson clients, for 18 months after his separation from Arthur Anderson.

After the Enron debacle, Arthur Anderson closed its Los Angeles office and laid Edwards off. Another company offered Edwards a job, but only (more…)

A recent California Supreme Court ruling held that an employer can legally terminate an employee who tests positive for marijuana – even when the employee has a prescription for medical marijuana use.

The ruling also affirmed the right of California employers to terminate employees, or refuse to hire applicants, who consume alcohol to excess.

Under the California Compassionate Use Act of 1996, residents in the state can legally use marijuana if it is prescribed by their doctor. Medical marijuana use is controversial, but proponents say it is highly effective in treating the nausea of chemotherapy, among other conditions.

The major conflict in Ross vs. Ragingwire Telecommunications, Inc. is that federal law prohibits possession of marijuana – even by medical users. So while possession of small amounts of “weed” for personal use is legal under a physician’s direction in California, it is not legal under federal law.

Essentially, the California Supreme Court ruled that a worker can be fired for violating federal law, even if what they are doing is legal under state law.

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