California Non-Compete Agreements for Employees

Direct answer: California generally voids employment noncompete agreements that restrain you from working in your profession, unless a limited statutory exception applies. Since January 1, 2024, employers also face new notice and enforcement limits under Business and Professions Code sections 16600, 16600.1, and 16600.5. Whether your clause is void—and what to do next—depends on the document and the facts. MAGISA LAW represents employees.

Call 888-818-1099 for a free consultation · Contact form · 2550 Honolulu Ave, Suite 105, Glendale, CA 91020

Free consultation
Fee and cost terms are discussed in consultation
Glendale office serving Southern California employees

What Business and Professions Code section 16600 says

Section 16600(a) states that, except as provided in the chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void. Subdivision (b), added by AB 1076 (Stats. 2023, Ch. 828), directs that this section shall be read broadly, in accordance with Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, to void the application of any noncompete agreement in an employment context, or any noncompete clause in an employment contract, no matter how narrowly tailored, that does not satisfy an exception in the chapter. The Legislature stated that this subdivision is declaratory of existing law.

Section 16600.1 — including or requiring a noncompete

Section 16600.1 makes it unlawful to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that does not satisfy a chapter exception. For current employees, and for former employees who were employed after January 1, 2022, whose contracts included a noncompete that does not satisfy an exception, the employer was required by February 14, 2024 to notify the employee in a written individualized communication (last known address and email) that the clause or agreement is void. A violation of section 16600.1 constitutes an act of unfair competition under Business and Professions Code section 17200 et seq.

The California Attorney General has also issued a consumer alert summarizing these worker rights. If you never received notice and still have a noncompete on file, bring it to a consultation.

Section 16600.5 — out-of-state signing and private actions (SB 699)

Section 16600.5 provides that any contract void under the chapter is unenforceable regardless of where and when it was signed; that an employer or former employer shall not attempt to enforce a void contract even if it was signed and employment was maintained outside California; that an employer shall not enter into a contract with an employee or prospective employee that includes a void provision; and that entering into or attempting to enforce such a contract is a civil violation. An employee, former employee, or prospective employee may bring a private action for injunctive relief or actual damages, or both, and a prevailing employee is entitled to reasonable attorney’s fees and costs.

What this page does not decide for you

Non-solicit, confidentiality, trade-secret, and invention-assignment clauses raise different questions. Some restraints may still be addressed under other California rules even when a classic noncompete is void. Sale-of-business and certain partnership exceptions exist in the same chapter. We review your actual paperwork before advising what may apply.

Free consultation with MAGISA LAW

MAGISA LAW invites employees to contact the firm for a free consultation to talk through your situation with an attorney. Call 888-818-1099, email hello@magisalaw.com, or use the contact page.

Consultations are available in English, Spanish, Armenian, and Russian with an attorney.

Fee and cost terms are discussed during the free consultation.

Office: 2550 Honolulu Ave, Suite 105, Glendale, CA 91020.

Frequently asked questions

Are noncompete agreements enforceable in California employment?

Generally no, unless a statutory exception in the Business and Professions Code chapter applies. Business and Professions Code section 16600 provides that contracts restraining someone from engaging in a lawful profession, trade, or business are void to that extent, and AB 1076 directs that rule to be read broadly in the employment context.

What did AB 1076 and SB 699 change?

As of January 1, 2024, AB 1076 made it unlawful to include or require a noncompete that does not satisfy a chapter exception, required notice by February 14, 2024 to certain current and former employees that void noncompetes are void, and treats violations as unfair competition. SB 699 (section 16600.5) makes void contracts unenforceable regardless of where or when signed, bars attempts to enforce them even if employment was outside California, and allows a private action for injunctive relief, actual damages, and prevailing-party attorney’s fees.

What if I signed a noncompete in another state?

Section 16600.5 states that a contract void under the chapter is unenforceable regardless of where and when it was signed, and that an employer shall not attempt to enforce it even if the contract was signed and employment was maintained outside California. How that applies to your move or remote work is fact-specific—bring the agreement to a consultation.

Are there exceptions?

Yes. The same Business and Professions Code chapter contains limited statutory exceptions (for example, certain sale-of-business and partnership contexts). Whether an exception applies depends on the agreement and the facts. We do not decide that from a webpage.

What should I bring to a consultation?

The full agreement (offer letter, handbook acknowledgment, or standalone covenant), any non-solicit or confidentiality clauses, the dates you worked, and any letter threatening enforcement. Related confidentiality or trade-secret rules may still apply even when a noncompete is void.