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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…)

The Oregon non-compete law prohibits noncompetition agreements between employers and hourly workers, in almost all cases.

However, under this new law, employers are still permitted to have management and sales employees sign non-compete agreements. The agreements limit the employee’s ability to work for a competitor, at least for a period of time.

Such non-compete agreements – even voluntary ones – are illegal when applied to hourly or salaried non-exempt employees under Oregon law.

The law set limits on the (more…)

A little-known Oregon law that went into effect in 2008 sets limits on the non-compete agreements so popular with employers.

Former Oregon Labor Commission Dan Gardner originally sponsored the bill to “turn back the recent expansion of non-compete agreements against” hourly and non-management workers. Commissioner Gardner cited the use of such agreements with parking lot attendants, call center operators and home cleaning service workers as excessive.

“There is a dangerous expansion in (more…)