ENTERTAINMENT LITIGATION: LOSING KEY EXECUTIVES TO COMPETITORS
EXHIBITOR RELATIONS CASE SHOWS EMPLOYERS IN CALIFORNIA THE DIFFICULTY IN PREVENTING EMPLOYEES FROM COMPETING AGAINST THEM
Companies are only as good as their employees. Facing that reality, companies doing business in California have the additional problem of having key employees leave to form a competing business.
California law is clear: "Every contract by which anyone is restrained from engaging in a lawful profession, trade or business of any kind is to that extent void." What this means is that California has become a "right to work" state. No matter how hard companies try, their attempts to prevent departing employees from competing with their former employers – i.e. "engaging in a lawful profession" – is viewed by the courts with skepticism. Something more will be required for a court to intervene.
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