Corporate Finance Law Blog : Corporate Finance Lawyer & Attorney : Davis Wright Tremaine Law Firm

August 13, 2008

Printer-friendly version

By Jennifer L. Brockett, Stuart W. Miller, John P. LeCrone and Emilio Gonzalez

California's Supreme Court, in the recent case of Edwards v. Arthur Anderson LLP, has affirmed California's long-standing ban on noncompete agreements and explicitly extended it to so-called “nonsolicitation” provisions, as well. The Court ruled that noncompetition and nonsolicitation clauses are void in California, unless they fall within a statutory exception, such as agreements involving the sale of a business or shares of stock in a corporation. The Court also found that an employer that requires employees to sign an agreement containing such a clause may commit an unlawful business practice subject to tort damages. Continue reading...

• Email This
• Print
• Comments
• Trackbacks
• Share Link

The California Supreme Court issued an opinion on Thursday, August 7, 2008, which held that:

"[n]oncompetition agreements are invalid under section 16600 in California even if narrowly drawn, unless they fall within the applicable statutory exceptions of sections 16601, 16602, or 16602.5." 

You can read the case here.  CNET coverage can also be found here.

• Email This
• Print
• Comments
• Trackbacks
• Share Link

California has banned trans fats from restaurants and from baked goods.  Governor Schwarzenegger has signed the bill into law, which will require trans fats be removed from restaurant food by 2010 and from baked goods by 2011.

• Email This
• Print
• Comments
• Trackbacks
• Share Link

Employers gain flexibility in meal and rest periods,
“off-the-clock” work

By John P. LeCrone and Janet Grumer
July 2008

Employers in California finally have some help navigating the state's complicated (and often costly) meal and rest period and timekeeping statutes and regulations. On July 22, 2008, the California Court of Appeal issued a comprehensive decision in Brinker Restaurant Corporation v. Superior Court, a wage hour class action alleging meal and rest period and “off-the-clock” violations by Brinker Restaurant Corporation.

Although this decision giving employers greater flexibility could be reversed, it establishes prevailing California law for the near term. California employers should embrace the ruling, which is summarized in this advisory, and take the initiative now to ensure they are in compliance.

• Email This
• Print
• Comments
• Trackbacks
• Share Link