Drafting an effective employment agreement or release has become a challenging endeavor for a new reason. In Golden v. California Emergency Physicians Medical Group, the U.S. Court of Appeals for the Ninth Circuit added another source of concern to those employers who deploy “no re-hire” provisions in releases. Following Golden, a fact-intensive inquiry may be required into the particular provision to determine if it constitutes “a restraint of a substantial character,” — here, whether or not there was a restraint of a substantial character of Dr. Golden’s medical practice. And, given the Ninth Circuit’s reading of California law, Golden may also have implications well beyond the employment context, possibly extending to certain commercial contracts as well, to the extent they can be said to restrain anyone from engaging in a lawful profession, trade or business.
Continue Reading Ninth Circuit Broadens California Rule Against Non-Competes