Mark Terman Discusses California Noncompete Laws With Business Insurance

In “Noncompete bans put employers on notice,” labor and employment partner Mark Terman spoke to Business Insurance about two California noncompete laws that take effect in 2024, one of which requires employers to give individualized notice to employees (and certain former employees) of void noncompete provisions in employee agreements.

The failure to give notice by February 14, 2024, will be “deemed by the statute to be an act of unfair competition that may provide fodder for litigation against the employer,” Terman said. He also noted that employers should remind current and former employees about their obligations to not use or disclose trade secrets pursuant to the agreements they signed and that their work product remains company property.

Employers should close the letter “with something to the effect that, ‘We’re counting on you to live up to our obligations to protect your trade secrets from unauthorized use,’” Terman concluded.