California employers know the rule by heart: non-competition agreements are void in this state. Business and Professions Code section 16600 has been on the books for over a century, and the Legislature doubled down in 2024 with SB 699 and AB 1076, making it unlawful even to attempt to enforce a non-compete and requiring employers
Terminating an employee is one of the hardest things a business does, and it is almost certainly the most legally scrutinized decision you will make in the workplace. It is also one of the few decisions that triggers immediate legal obligations — the clock starts running the moment you end the relationship. Yet how to
California employers were required by February 14, 2024, under AB 1076, to notify employees bound by noncompetition agreements that these agreements are void and unenforceable—unless a statutory exception applies. With this update to California law, many employers are rightly asking:
How can employers still protect their business interests, proprietary information, and customer relationships
On September 1, 2023, Governor Newsom signed SB 699 into law that adds additional prohibitions on employer’s use of non-competition agreements and another restrictive covenants. This legislation has several key components that employers both within and outside California should be keenly aware of:
1. Implementation Date: The law will take effect from January 1, 2024.
In Edwards v. Arthur Andersen LLP (link to PDF), the California Supreme Court ruled on the following issues: (1) To what extent does Business and Professions Code section 16600 prohibit employee noncompetition agreements; and (2) is a contract provision requiring an employee to release “any and all” claims unlawful because it encompasses nonwaivable statutory protections