Originally Published MX November/December
2003

GOVERNMENTAL &
LEGAL AFFAIRS

Recent court rulings about employee confidentiality make noncompetition agreements more important than ever.

Joel D. Covelman

If a trusted employee leaves a company to take a similar position with a competing firm, can the first company bring a lawsuit to stop it? The answer

 depends upon several factors. However, a recent California appellate court decision narrows the scope of remedies available to the former employer when the departing employee has a confidentiality agreement, but not a noncompetition agreement, with that employer.