Robert Milligan and Eric von Ziepel Published in the Los Angeles County Bar Association Business and Corporate Law Section eNews
"Edwards v. Arthur Andersen and Beyond - The Potential Wide reach of California Business & Professions Code Section 16600"

Robert Milligan and Eric von Ziepel's article, "Edwards v. Arthur Andersen and Beyond - The Potential Wide reach of California Business & Professions Code Section 16600," was published in the February 2009 issue of the Los Angeles County Bar Association Business and Corporate Law Section eNews. In their article, the authors discuss the Edwards v. Arthur Andersen decision, in which the California Supreme Court rejected the Ninth Circuit’s “narrow restraint exception” to Business and Professions Code Section 16600 and held that non competition agreements between employers and employees are invalid under section 16600, unless they fall within certain narrow statutory exceptions.

The authors suggest that given the changes to the landscape following Edwards, employers need to proceed with caution and carefully consider their existing and prospective non-solicitation and non-disclosure provisions. They explain, “Overly broad and overreaching provisions likely violate Section 16600 and employers and businesses face the risk that courts will invalidate such provisions.” Additionally, they note that “the inclusion of such provisions opens employers and businesses up to the potential of suits for declaratory relief and alleged violations of Business & Professions Code Section 17200 for interference with their employees’ ability to obtain new employment, and for impeding competitors from lawfully hiring employees.”