Robert Milligan and Jesica Pandika Published in New Matter

“Recent California State Court Decision Strikes Down Broad ‘No-Hire’ Provision”

Robert Milligan and Jesica Pandika’s article, “Recent California State Court Decision Strikes Down Broad ‘No-Hire’ Provision,” was published in the Fall issue (Volume 32, Number 3) of New Matter, the Official Publication of the Intellectual Property Law Section of the State Bar of California.

In their article, Robert and Jesica illustrate why all but the narrowest of “no-hire” provisions in both business service agreements and employment agreements may now violate California law. They go on to show that the Court's decision reaffirmed that employment contracts that prohibit an employee from working for a competitor when the employment has terminated are unenforceable in California. Furthermore, Robert and Jesica note that the Court’s emphasis on the employees’ freedom of mobility protected by the Business and Professions Code suggests that any contractual restriction on such mobility will be highly scrutinized by California courts. Finally, the authors suggest that employers check their “non-solicitation” provisions to make sure they are not including unlawful terms in their employment agreements.