What do yoga instructors, event planners and exterminators have in common? These are fields that are reportedly witnessing an increase in the use of noncompete provisions in employment agreements. Details of this increase in the use of noncompete provisions were reported in a New York Times article this Sunday. Click here to view article.
While the article makes clear that such provisions are generally illegal in California, it observes that there is a large variation between other states’ laws, from states having some restrictions on the use of noncompetes to Texas and Florida which place relatively few limits on them. These variations can raise significant issues for California employers who are in the process of hiring or recruiting employees who either work outside California or work for non-California based companies. In making such decisions, employers are advised to determine whether potential employees are subject to a noncompete provision and obtain legal advice as to the enforceability of such provision under the applicable state law.