Gibson Dunn partners Katherine V.A. Smith and Harris M. Mufson, along with of counsel Justin M. DiGennaro, have addressed the issue of California’s noncompete ban in a Bloomberg Law article titled “California’s Noncompete Ban Getting Sidestepped in Court Rulings.” They discuss how employers are prevailing in federal court disputes by utilizing contractual choice-of-law provisions to bypass the state’s restrictions on noncompete agreements.
“Employers are winning federal court disputes involving California’s ban on noncompete agreements by enforcing contractual choice-of-law provisions,” they explain.
This analysis highlights a significant legal strategy being employed by companies to navigate around California’s stringent regulations on noncompete clauses, which typically aim to prevent employees from joining competitors after leaving a company.
