In a very timely decision, the California Supreme Court just granted all formerly-employed (and future unemployed) Californians permission to steal clients and work from their former employers.
California employers already had a tougher time enforcing non-compete agreements than employers in any other state, but the California Supreme Court just made it darn near impossible.
In a case that pitted Raymond Edwards II against his former employer Arthur Andersen LLP, the California justices held that Arthur Andersen’s noncompete agreement was not enforceable, that Arthur Andersen could not prevent Edwards from soliciting work from its clients.
That’s good news for everyone who’s been laid off. If you’ve avoided knocking on the doors of your employers’ competitors, or dialing up old clients, resist no more! On the contrary, pull out your old notes and any numbers in your Rolodex, cell phone or PDA. Find out if any of those folks who so enjoyed working with you when you worked for your former employer might want to work with you now that you’re on your own or with a new firm.
The good news doesn’t stop there; the California Supreme Court’s decision also protects you from employers who refuse to hire you or threaten to fire you unless you sign a non-compete agreement.
A word of caution though. While this decision does create a bonanza of opportunity, it is not without its thorns. The thorniest thorn in this case is the fact that this decision doesn’t afford you the opportunity to steal proprietary information like client lists or account information from your employer, or to sell their secret formulas to their competitors.
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