California Non-Compete Agreements: What Every Employee Needs to Know
California Non-Compete Agreements: What Every Employee Needs to Know
If your employer has asked you to sign a non-compete agreement — or you’re unsure about a restriction in your contract — you need to understand your rights under California law.
Non-Competes Are Not Enforceable in California — With Very Few Exceptions
Under California Business and Professions Code § 16600, any contract that restrains someone from engaging in a lawful profession, trade, or business is void. This includes non-compete clauses that:
“Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.”
— § 16600 BPC
That means most non-competes are unenforceable — even if you agreed.
New Laws in 2024 Make Employer Non-Competes Even Riskier
With the passage of SB 699 and AB 1076, California has doubled down on strong existing law banning non-competes:
What Counts as a Non-Compete?
Some employers may try to disguise a non-compete as something else. Be on the lookout for:
Not sure what your agreement says? We’ll help you read between the lines.
When Are Non-Competes Allowed in California?
There are only a few narrow exceptions:
Outside of these, you are almost certainly protected.
What to Do if You’ve Signed a Non-Compete
- Don’t panic. Just because you signed it doesn’t mean it’s legal or enforceable.
- Don’t assume your employer is right. Many companies continue using non-competes, even when they know they can’t enforce them.
- Get legal advice. A short conversation with an experienced employment attorney can save you from unnecessary fear or career limitations.
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