Non-Compete News: Is a Non-Solicitation of Employees Provision Enforceable in California?

Executive Summary: Last month, California’s Fourth District Court of Appeal issued AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923 (Cal. Ct. App. 2018), a decision calling into question the validity of non-solicitation of employees a/k/a anti-piracy provisions in California. Prior to this decision, California’s Supreme Court had left open the issue of whether anti-piracy provisions were enforceable. Arguably, there now exists a split in authority in California with regard to the enforcement of these provisions, although this recent decision may be construed narrowly to its context: staffing companies.