Witt W. Chang

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Non-compete agreements are currently exclusively regulated by a panoply of state laws. Coextensive with recent scrutiny over anti-competitive business practices relating to non-compete use, federal interest in non-compete regulation has heightened, culminating in a White House “Call to Action” urging certain state reforms. While there appears to be room for a limited level of federal regulation, such regulation should focus on bridging the information gap between employers and employees rather than blessing an overtly pro-employer…
California’s state and federal courts are loath to enforce choice of law provisions allowing the law of an out-of-state employer’s home state to control the validity of a California employee’s non-compete. But California’s federal courts will uphold forum selection clauses stipulating that the home state must make the choice of law determination, dramatically increasing the likelihood that the non-compete will be upheld. California Business & Professions Code Section 16600 (Section 16600), which codifies California’s public…