Alert - Employment Law Alert – Ninth Circuit Further Restricts "Non-Compete" Agreements

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Employers who negotiate severance packages with disgruntled or problem employees often include language in the severance agreement whereby the employee agrees to never again seek employment with the employer or with any entity affiliated with the employer. This is a rational requirement that assists both employer and employee in moving on professionally, by mutually contracting to have no further dealings with one another. A recent opinion by the Ninth Circuit Court of Appeals is therefore concerning because (1) it places an outer limit on the parties’ ability to contract to stay away from each other, and (2) it states that courts will view such agreements as posing “mixed questions of law and fact” which invites a higher level of judicial scrutiny and second guessing. As a result of...
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