For decades, employers have included covenants not to compete in employment agreements with their employees. These contract provisions typically prohibit an employee, upon the termination of the employment relationship, either from working for a competitor or soliciting the former employer's clients for a period within a particular geographic area. Becker v. Bailey, 299 A.2d 835 (Md. 1973).
Although interference with an individual's right to pursue employment is generally disfavored, states typically have recognized that an employer may have intellectual property interests in protecting confidential and proprietary trade secrets or secret customer lists. American Credit Indemnity Co. v. Sacks, 213 Cal. App. 3d 622, 630-32 (Calif. 2d Ct. App. 1989). However, the California Supreme Court recently threw out the long-standing laws governing covenants not to compete, changing the landscape of noncompete clauses not just in California but across the country.
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