Prometheus 6

"An employer cannot by contract restrain a former employee from engaging in his or her profession, trade or business," said Justice Ming Chin in Thursday's ruling. He said the law recognizes only a few limited exceptions, for noncompete agreements that are part of the breakup of a corporation or partnership.

State Supreme Court rejects noncompete clauses
Bob Egelko, Chronicle Staff Writer
Friday, August 8, 2008

(08-07) 12:04 PDT SAN FRANCISCO -- Californians have the right to move from one company to another or start their own business and can't be prohibited by their employer from working for a competitor in their next job, the state Supreme Court ruled Thursday.

In a unanimous decision, the justices said state law since 1872 has forbidden what are called noncompete clauses that restrict management employees' options after they leave a company.