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A leading court decision discussing the conflict between California law and the laws of other states is the 1998 California 4th District Court of Appeal decision Application Group, Inc. v. Hunter Group, Inc. [18] In Hunter, a Maryland company required that its Maryland-based employee agree to a one-year non-compete agreement. The contract ...
“The minute you set foot in California, [the noncompete agreement] evaporates,” Ottinger said, even if it says it is subject to the laws of another state. In New York, many agreements are ...
Research shows that non-compete agreements make labor markets less competitive, reduce wages and reduce labor mobility. [3] [1] While non-compete agreements may incentivize company investment into their workers and research, they may also reduce innovation and productivity by employees who may be forced to leave a sector when they leave a firm.
I get people in my law practice asking me questions on non-competition agreements every week. That's because most people don't even realize they've signed something saying they can't work for a ...
In most jurisdictions, courts routinely "blue pencil" or reform covenants that are deemed not reasonable. The blue pencil doctrine gives courts the authority to strike unreasonable clauses from a non-compete agreement, leaving the rest to be enforced, or actually to modify the agreement to reflect the terms that the parties originally could have and probably should have agreed to. [3]
The Biden administration has issued a nationwide ban on the ability of employers to make their workers sign noncompete agreements, a move regulators said would help boost employee pay but which is ...
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