Business Law

A Hiring Party May Be Liable For The Contractor’s Torts If The Hirer Had The Right To Terminate The Relationship || As a general rule, an employee of an independent contractor cannot sue the party that hired the contractor to do the work. This is also known as the Privette Doctrine, which arose after the case of Privette v. Superior Court. In the Privette case, the Court held that owners and general contractors are not liable for injuries to the employees of subcontractors unless they have affirmatively done something by an act or omission that causes the injury.

California State Courts Are More Likely To Enforce An Employer’s Non-Compete Agreement When Trade Secrets Are Involved || Under Business and Professions Code §16600, every contract where one is restrained from engaging in a lawful profession, trade, or business of any kind, is to that extent void. Some employers assume that this code section is a rule that non-competition employment agreements are not unenforceable. That is an incorrect assumption. The purpose behind Business and Professions Code §16600 is to ensure that every citizen retains the right to pursue any lawful employment and enterprise of their choice, and protects the important legal right of persons to engage in businesses and occupations of their choosing.