Protecting Trade Secrets

This article originally appeared in The Recorder and is republished here with permission from law.com.

Nearly three years ago, the California Supreme Court handed down a decision that underscored California's longstanding prohibition of employee noncompete agreements, Edwards v. Arthur Andersen, LLP, 44 Cal.4th 937 (2008). While California employers are generally aware that "noncompetes" are unenforceable in California, many are still having employees sign employment documents containing unenforceable restrictive covenants, and others believe that they can restrict an employee's post-employment solicitation of former clients or customers. A good number of employers are still using old form employment agreements that contain restrictive covenants which are now clearly impermissible. Given the obstacles that exist in California, how can an employer with California employees protect its investment in its personnel and protect important and valuable proprietary