New York enforces reasonable employee agreements not to compete. California does not. This article discusses the nettlesome but common situation where a New York employer has employees who work in a different state. While the issue is not limited to New York and California, the laws of New York and California are illustrative. Both jurisdictions have large populations and fairly well-developed laws. As importantly, the laws of these jurisdictions provide a sharp contrast.
What happens when a New York company employs personnel in California? Are the employees subject to the law in New York or the law in California? The answer is surprisingly uncertain. Even where parties have agreed to apply New York law, a New York court may apply that law and enforce restrictions while a California court, under those same circumstances, may disregard New York law and invalidate the restrictions as against its strong public policy.
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