Labor won a victory in the California case of Edwards v. Arthur Anderson.
Edwards was an accountant for Arthur Anderson. The company folded its US operations due to the disgrace of Enron. Edwards wanted a job. The company wanted him to sign away any claims he might have with the company in return for being released from the non-compete clause. The CA Supreme Court agreed with the employee and struck down the offending clause.
Most states interpret non-compete clauses narrowly, given the immense bargaining power of corporations and the importance of a worker’s freedom to ply his or her trade. Read the Edwards v. Anderson opinion for yourself. While you’re at it, read DCS v. Castillo , a 2006 case from the 8th Circuit. That case interprets Nebraska law. The employee won this case, too.
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