Posted by Catherine Chukwueke | Jun 17, 2025 |
California law generally prohibits non-solicitation clauses in employment contracts, favoring open competition and employee mobility. However, there are narrow exceptions where such clauses may be enforceable, including protection of trade secrets, the sale of a business, and partnership dissolution. This article breaks down the legal framework under Business and Professions Code Section 16600 and explores key court decisions shaping enforceability in California.
Posted by Catherine Chukwueke | Sep 21, 2023 |
Governor Gavin Newsom signed Senate Bill 699 ("SB 699") on September 1, 2023, reinforcing California's ban on noncompete agreements. This law voids such agreements, regardless of where or when they were signed, prohibits employers from enforcing them, and empowers employees to take legal action against employers who violate these provisions, including recovering attorney's fees and costs. Compliance with SB 699 mandates that employers refrain from having employees enter into noncompetition agreements, aligning with California's commitment to preserving employee mobility and fostering economic growth.
