In California, noncompete clauses are completely illegal:|
"An employer cannot by contract restrain a former employee from engaging in his or her profession, trade or business," said Justice Ming Chin in Thursday's ruling. He said the law recognizes only a few limited exceptions, for noncompete agreements that are part of the breakup of a corporation or partnership.Personally, I'd like to see these made illegal all over.
Businesses and employment lawyers have been following the case closely, anticipating that it would resolve the disagreement between state and federal courts on the meaning of the California law. Federal courts are likely to fall in line now that California's highest court has interpreted the law.