Comments on: Calif. Supreme Court finds noncompete clauses invalid

The ruling upholds an oft-misinterpreted state law, keeping the path clear for tech employees to freely join a competing company, or start their own.

[humanssssss]

"soliciting former clients when they leave the company" ... HP did this to my buddy. HP threatened to sue him if he contact former clients to switch to a competitor's product. He was too afraid. HP can go kiss his oss now. His clients trusted his advice and work. One client considered hiring him on but HP non-compete clause prohibit him to do it.

[alegr]

"non-compete" clause as rejected covers only the restriction to work at a competing business.

In my uneducated opinion, "soliciting former clients when they leave the company" would be abuse of proprietary business information (client list) and thus would be actionable.

[Galaxy5]

A former boss of mine at West Coast Imaging tried this with me and his current employees. He writes noncompetes into employee handbook and contracts.

As if living in the boonies, working for a violent religious zealot, and being forbidden to talk to people at other digital imaging companies wasn't bad enough for his employees' professional development, his philosophy was that if anyone went to another company, they were labelled a "traitor" (yes he used those words) and he actually sat down and forbade his employees to speak to these "traitors", even if they were friends!

I wonder if the employees could sue for relief, since the invalid non-competes ostensibly hindered their professional development and at-will status?

[benjaminstraight]

Non-compete causes are normally overbroad and an intimidation tactic used by companies. Good for CA.

[jb3177]

Does this set a precedent for other states?

[lynnmacey]

No. It is state law and settled by the top court in the state. The conflict was how different juristictions in the state interpreted the existing law. Looks like that is settled now.

[Get_Bent]

Why would it? This is a California state law; therefore, it applies only to residents of California. Even if your state had a similar law, it is subject to interpretation by your state's courts.

[Unmukt]

What about trade secret/ undisclosed information? Can't an Employer prohibit his employee to work with the competitor so that he may not take advantage of the trade secrets? Well, under WTO all members are supposed to enact a law protecting trade secret.