If your client has California operations and isn’t aware, it could end up like the employer did in Shomit James v. Globus Medical, Inc. James demonstrates that the competition in California for talent remains high, that competitors are increasingly aggressive about hiring employees your client may think are “locked up,” and will offensively challenge standard non-compete, no-hire and non-solicitation provisions with declaratory relief actions.  James serves as a valuable reminder of what is becoming an established practice in California — former employees (often bankrolled by their new employer) sue to invalidate these provisions as void and unenforceable under California law.  To make matters worse they often allege that, in seeking to enforce such restrictions, your client committed unfair business practices.

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To view the GT Alert as a PDF, please click here.