Protecting Company Information When Employees Bail: California Alternatives to Employee Non-Compete Agreements

How does a California employer prevent its business from walking out the door along with a departing employee?  In most jurisdictions, the employer could have the employees sign a non-compete agreement.  Not in California. 

One of the notorious employment laws that separates California from other states is its long-standing prohibition of employee non-compete agreements. California’s strong public policy against non-competes not only affects local employers, but it often complicates efforts of multi-state employers to utilize uniform restrictive covenants–such as non-competes and non-solicitation provisions–with its employees.  Here is a brief recap:

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