California Governor Gavin Newsom signed two bills in September
and October 2023, which took effect on January 1, 2024, that
require action prior to February 14, 2024.
New Laws
As you may be aware, California law (Business and Professions
Code section 16600) has long held that any contract that restrains
anyone from engaging in a lawful trade or business is void and
unenforceable (with certain narrow exceptions for the sale of a
business or agreements involving the dissolution of, or disposition
of an interest in, a partnership or limited liability company). The
new laws confirm that these restrictions apply in the employment
context, regardless of how narrowly-tailored a noncompete or
non-solicitation agreement might be. In addition, these new
amendments go much farther and provide that it is a violation of
law to enter into or attempt to
enforce a void noncompete or non-solicitation agreement.
Significantly, current, former, and prospective employees now have
a
