Noncompete clauses face uphill fight; firms test ethics rules in trying to box in ex-partners

Article Abstract:

Noncompete clauses are still common in the partnership agreements of some of the nation's foremost law firms even though most state courts will not enforce such restrictive covenants. Law firms include these clauses to prevent client loss when partners leave the firm. Even most local ethics rules outlaw such covenants, but this has not stopped many firms from including them in their partnership agreements. California is the only state which permits 'reasonable' restrictive covenants in partnership agreements.

states

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Arbitration pacts may ease employment disputes; a court may refuse to enforce an agreement, however, if a clause impairs the rights of employees

Article Abstract:

Law firms and other employers using employee arbitration agreements to reduce litigation should ensure that the agreements are drawn up carefully and offer similar rights to those enjoyed in court. Otherwise the agreement risks being set aside, as various state courts have done. These courts, however, generally presume in favor of the agreement, and have required employment discrimination claims to be pursued through arbitration rather than lawsuit. Some limits on awards or filing time may be unenforceable.

Negotiation, mediation and arbitration, Contracts, Labor arbitration, Labor disputes

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Are noncompete clauses kaput? In an emerging trend, states may follow California's policy favoring open competition

Article Abstract:

The effects of Section 16,600 of California's Business and Professions Code which forbids the enforcement of non-competition agreements and the California Uniform Trade Secrets Act which provides employers with some recourse against trade secret misappropriation are discussed. Steps for employers to use to prevent trade secret misappropriation and to gather evidence of the violation should it occur are given.

California, States, Trade secrets, Protection and preservation

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