Law.com has in interesting article up regarding Marissa Mayer’s recent high-profile move from Google to Yahoo. The article springs from the often asked question surrounding Mayer’s move: “Didn’t she have a non-compete?”
As the article points out, the answer is “No”, as California law does not permit true non-compete agreements. This is not necessarily the case in other states, however. There is huge variation from state to state as to what kind of restrictive covenants are and are not enforceable in employment relationships, and where they are enforceable, what kind of restrictions are permissible.
The enforceability of restrictive covenants has a huge potential impact on the recruitment and retention of valuable employees. As such, it pays huge dividends for companies to carefully consider the implications of both their own employment contracts and those of completing companies in making decisions regarding hiring and retaining employees, as well as protecting the valuable knowledge those employees may gain while they are employed.