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Business Law

Sep. 9, 2024

California court clarifies restrictions on competition in business transactions

California law generally favors open competition and employee mobility, rendering non-compete clauses void unless they meet specific exceptions.

Shain Wasser

Partner, Kennedys Law LLP

Email: Shain.Wasser@kennedyslaw.com

Shutterstock

Samuelian v. Life Generations Healthcare, LLC, a new case from The California Court of Appeals clarified two significant unsettled issues. The first, a contractual restraint on competition is evaluated under a reasonableness standard, and is not void per se, where a business owner sells less than his or her entire interest. The second, members of a manager-mana...

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