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In the vast majority of states, noncompete agreements are generally enforceable as long as they’re reasonable in terms of having a genuine business need, an appropriate geographic scope and an appropriate time duration. However, California law differs significantly from most states in this regard.
The California Supreme Court has issued an important decision that makes it clear that employers cannot restrain an employee’s ability to compete, regardless of how reasonable or narrow the restrictions. As a result of this ruling, employers should do a thorough review of their employment agreements to ensure they do not contain unlawful noncompetition provisions.