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Federal Court in Minnesota finds Choice of Law Provision Unenforceable Based on California Labor Code Section 925

California Labor Code section 925 remains a potent weapon for departing employees who live and work in California who wish to avoid covenants not to compete. Often, employers will place choice of law provisions in their employment agreements and hope to enforce them in other states where such covenants are more likely to be enforced.

That practice became more difficult with the passage of Labor Code 925. Now, a federal court sitting in Minnesota has granted several defendants summary judgment on the basis that such covenants are not enforceable as a matter of law.

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