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In California, non-compete agreements are generally unenforceable due to the state’s strong public policy in favor of employee mobility and open competition. This blog post explains why most non-competes are void under California Business and Professions Code Section 16600, highlights notable legal cases such as Edwards v. Arthur Andersen LLP, and explores the limited exceptions where such clauses may be valid—such as the sale of a business. For employers, it offers practical alternatives like confidentiality and non-disclosure agreements. For employees, it outlines their rights and protections under California law.

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.