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- Noncompetition Agreements Remain Unenforceable in California — But . . .
3 Employees Owe a Duty of Loyalty While Employed Labor Code §§ 2860, 2863 California law still imposes a duty of loyalty Specifically: Anything an employee acquires by virtue of their employment —except earned compensation—belongs to the employer
- Noncompete News: Is The Duty Of Loyalty Dead In California?
While an employee's duty of loyalty is not dead in California, the Mattel ruling makes clear that it is certainly more limited If a duty of loyalty is breached by a fiduciary, the employer may sue that employee pursuant to a tort theory of recovery for compensatory and punitive damages
- Employers May Prohibit California Employees From Competing During . . .
California employers got a win with a recent court decision that an employee’s promise not to compete during employment is enforceable under California law, in the case of Techno Lite, Inc v Emcod, LLC (Cal Ct App (2d Dist ), Case No B284989)
- One Year of California’s New Non-Compete Law: 5 Tips for All Employers . . .
On January 1, 2024, California introduced a new statute that makes non-competes unlawful “regardless of where and when the contract was signed ” This law has produced new uncertainty for employers around the country, and, predictably, litigation has taken off
- Californias New Nationwide Focus on Noncompetition Agreements
Under California Senate Bill (SB) 699, a dramatic expansion of California's general ban on noncompetition and non-solicitation agreements for most employees is set to come into effect on Jan 1, 2024
- New Laws Reinforce California’s Hostility to Non-Competes with Notice . . .
California recently enacted two bills — SB 699 and AB 1076 — amending and adding to Section 16600 of the California Business and Professions Code to broaden the scope of California’s already expansive prohibitions on post-employment non-compete agreements and to add consequences for violations
- Noncompete News: Is The Duty Of Loyalty Dead In California?
In Mattel, Inc v MGA Entertainment, Inc , the court held that "[i]n California, there is no tort for 'breach of duty of loyalty' that is distinct from the recognized tort of 'breach
- Non-Compete Agreements in California | Wang IP Law Group, P. C.
California law recognizes that a duty of loyalty is owed by employees to their employer during their employment A duty of loyalty is breached when employees divert corporate assets, opportunities, or information for personal gain
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