A Rare Occurrence: California Court Overturns Arbitrator’s Award

California’s statutory ban on post-employment covenants, which are enforceable in most other states, has bedeviled employers trying to protect confidential information and trade secrets. The state’s Business and Professions Code section 16600 provides that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” Due to this prohibition, employers in California have few options in terms of preventing post-employment competition and solicitation.

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