agreeing to a non-compete agreement

California Strengthens Ban on Non-Compete Agreements

As of January 1, 2024, two new California laws take effect, seeking to reinforce the state’s longstanding prohibition of non-competition agreements.

SB 699 prohibits employers from entering into or trying to enforce noncompete agreements that are void under California law, regardless of where the employee worked when the agreement was entered or where the agreement was executed. Additionally, AB 1076 makes it unlawful for employers to include post-employment noncompete clauses in employment contracts or require employees to enter post-employment noncompete agreements. As of February 14, 2024, AB 1076 requires employers to provide all current and certain former employees with individualized written notices that any post-employment noncompete clause in an employment agreement and/or post-employment noncompete agreement with the employer is void.