Business Litigation

The proposed FTC rule would broadly ban employers from imposing non-competes on their workers. The rule, once it becomes final, would supersede California state law, which allows non-competes in limited situations, including when necessary to protect the employer’s trade secrets.

Under current California law, the economic loss rule does not apply to a plaintiff’s claim for fraudulent inducement by concealment. However, the law may change as the California Supreme Court recently granted the Ninth Circuit Court of Appeals’ request for certification of this precise question.

Liquidated damages provisions in non-consumer contracts are deemed valid unless the party seeking to invalidate the provision establishes that the provision was unreasonable under the circumstances existing at the time the contract was made.