Non-compete agreements are contracts designed to prevent employees from working for a competitor or launching a similar business after they leave a company. While commonplace in many states, California has historically frowned upon these agreements, favoring employee mobility and open competition.
California law generally considers non-compete agreements a restraint of trade, rendering them unenforceable under Business and Professions Code Section 16600. However, recent legislation — AB 1076 and SB 699, effective January 1, 2024 — has further solidified this stance.
These changes have significant implications for employers, both within California and those who hire California residents. Let’s take a closer look at what these new laws mean for you and your business when it comes to non-compete California.
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