TO HIRE OR NOT TO HIRE - WHAT SILICON VALLEY COMPANIES SHOULD KNOW ABOUT HIRING COMPETITORS EMPLOYEES

The Silicon Valley is one of the most important money-generating regio ns of America. Its phenomenal success is the result of a unique region al network-based industrial system which operates as a kind of meta-or ganization. Engineers move frequently between firms and projects, taki ng the knowledge, skills, and experience acquired at previous jobs and using them as building blocks in their new jobs. California courts ha ve contributed to Silicon Valley's success by allowing workers easy mo bility among jobs and by restricting employers' attempts to restrain e mployees from relocating. As a result, most employers have come to acc ept a high turnover rate as a cost of doing business in the region. Th is Note addresses a possible crisis facing the world's technology hub. After two decades of amicable farewells, lawsuits threaten the Valley 's valuable network-based system. Silicon Valley employers are increas ingly bringing lawsuits against departing employees and the firms that hire them. Using California employment law and, where needed, the law of other jurisdictions, this Note examines the most common causes of action advanced by former employers against former employees. By analy zing these causes of action, the Note determines the employer's rights and duties in specific situations and recommends practices to help ne w employers avoid and deal effectively with potential lawsuits.