"Edwards v. Arthur Andersen LLP": One Year Later

On August 7, 2008, the California Supreme Court issued its highly anticipated decision in Edwards v. Arthur Andersen LLP, unanimously holding that Business & Professions Code section 16600 invalidated a provision in Edwards's employment agreement that restricted him from serving customers and competing with Arthur Andersen following the termination of his employment.¹  The Supreme Court rejected the "narrow restraint" exception² that the Ninth Circuit and federal courts had previously embraced, and instead held that a provision prohibiting solicitation of customers that even "partially" or "narrowly" restricts an employee's ability to practice the employee's trade or profession is prohibited.