The California Supreme Court Rejects The Ninth Circuit’s Narrow Restraint Exception To California’s Prohibition On Employee Non-Competition Agreements In Edwards v. Arthur Andersen LLP

The California Supreme Court released its highly anticipated decision in Edwards v. Arthur Andersen LLP  today and held that employee non-competition agreements are invalid, even if narrowly drawn, unless the agreement falls within a statutory exception. 

In doing so, the Court rejected the Ninth Circuit’s narrow restraint exception, which excepted the prohibition contained in Business and Professions section 16600 on non-competition agreements where one was barred from pursuing only a small part or limited part of the business, trade or profession.

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