Law Office of Henry B. LaTorraca Civil Trial Attorney

Lawsuit challenges the tech industry's non-compete agreements

As technology has made the world smaller, companies have responded by increasing their online presence through websites, social media and other platforms. That connectivity has truly created a sense of a global economy. Unfortunately, it may also have increased unfair competition or other unlawful practices from aggressive competitors. 

California’s technology industry provides a case study. Specifically, four technology companies -- Apple, Google, Adobe and Intel -- are currently in mediation talks over a class action lawsuit involving their hiring practices. The talks come after a recently rejected settlement proposal of $324.5 million.

As a business dispute and commercial litigation attorney is well aware, companies that employ highly skilled and specialized workers may rely on non-compete agreements, as part of their business strategy. The rationale is that businesses should not be able to poach employees away from their competitors -- potentially for the purpose of acquiring confidential trade secrets -- by simply presenting a larger financial incentive. Such non-compete agreements can help protect a company’s legal right to compete fairly. 

California’s lawmakers recognize the importance of keeping trade secrets confidential, as evidenced by the state’s unfair competition laws. Employment contracts that include a lawful non-compete provision may also be found legal under state law. However, the application of those laws to specific fact patterns can become complex -- or the subject of a lawsuit, as in today’s story.

In order to resolve such disputes, the advocacy of an experienced commercial and business litigation attorney may be needed. An attorney can work to protect a client’s best interests, while also offering strategies for preserving a company’s reputation when news of a lawsuit becomes public or the subject of media attention.

Source: Today, “Apple, Google resume talks with tech workers in hiring lawsuit: filing,” Sept. 4, 2014

No Comments

Leave a comment
Comment Information

Creative Solutions for Complex Legal Issues

Map email us for a response

Contact the Law Office of Henry B. LaTorraca

Prospective clients are invited to contact attorney LaTorraca at 562-216-2942 for an initial lawyer consultation to discuss their legal matter.

*AV Preeminent is a certification mark of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Follow Henry B. LaTorraca Via Social Media

400 Oceangate Suite 700 Long Beach, CA 90802-4306 Phone: 562-216-2942 Fax: 562-216-2943 Map & Directions

facebook google plus LinkedIn directions