Startup and growth company employees in California rest easy knowing that California believes so strongly in the portability of employment that post-termination noncompetes are generally void, except for a few exceptions as referenced below (especially in the context of noncompetes connected to a sale of a business). That comfort has extended to post-employment nonsolicits, which the California courts have viewed as veiled noncompetes. However, just over a week ago, on September 7, a federal district court in California seems to have strayed from this path. This article briefly explores that recent case, Fidelity Brokerage Services LLC v. Rocine, et al., and the seemingly unanswered questions it raises regarding what employers and employees can expect from post-termination nonsolicits in the Golden State.
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