31st Annual Silicon Valley All Hands Meeting
If you think you understand the ins and outs of the way the Golden State treats employee mobility issues, you may be surprised by this discussion of new developments regarding enforceability of non-competes and employee non-solicitation provisions, in light of the new case law decisions and statutory developments, including California Labor Code Section 925. Section 925 or previously Senate Bill 1241, authored by Senator Bob Wieckowski (D-Fremont), was the subject of much debate and lobbying in the California State Legislature in 2016 before it ultimately passed in its current form and became effective in 2017. This fantastic panel will present a unique opportunity to hear from many perspectives and learn from first-hand experience:
This panel will explore the growing trend of narrowing the scope of restrictive covenants across the U.S., including whether, against this backdrop, Section 925 may be an unexpected Trojan horse in California, which is known for having a strong public policy against non-competes. The Legislature passed Section 925 with the intent of further protecting California employees from agreements that might deprive them of the protections of California law. But a less discussed provision of this statute, Section 925(e), if enforced strictly as drafted, could allow employees to opt out of those protections. The panel will also explore how these new developments affect how employers deal with onboarding and offboarding employees as a practical matter, particularly from and to competitors. The panel also will discuss potential new bases for liability related to the new statutory and case law arguably narrowing the reach of restrictive covenants in California, and certain strategic considerations in prosecuting or defending restrictive covenant claims.