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ARTICLE · 13 FEBRUARY 2024

The Continued Attack On Non-Competes

Ward and Smith, P.A
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Under California law, it has been the longstanding policy that non-compete restrictions are generally void and unenforceable, subject to narrow exceptions.

United StatesEmployment and HR
Justin T. Hill
Justin T. Hill
Devon D. Williams
Devon D. Williams

At the end of 2023, California signed two more bills into laws to further restrict non-compete agreements and reiterate the state's public policy in favor of employee mobility. SB 699 prohibits employers from including, entering into, and attempting to enforce a noncompete clause in an employment contract, regardless of whether the employee signed the contract in another state or worked in another state when the contract was executed. AB 1076 restates the invalidity of non-compete clauses and requires employers to provide notice to current and former employees about unlawful non-compete covenants in their contracts.

Both of these laws went into effect on January 1, 2024. However, employers must comply with the notice requirements of AB 1076 by February 14, 2024.

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