Are non-compete agreements enforceable in California?
No. California voids nearly all non-compete agreements as restraints on trade, whatever the contract says and whichever state's law it names. Since 2024, employers must also notify affected current and former employees that any such clause is void, and merely requiring one can itself be a violation.
Business and Professions Code § 16600 has voided these agreements for well over a century. The narrow exceptions concern the sale of a business or the dissolution of a partnership — not ordinary employment.
AB 1076 and SB 699, both effective in 2024, went further: a non-compete is unenforceable regardless of where it was signed, and employers were required to send individual written notice to employees who had signed one.
Protecting genuine trade secrets remains lawful by other means. It is the blanket restriction on working elsewhere that fails.
Sources
Last reviewed 2026-08-07. Informational only — not legal advice. California rules change; confirm against the current source before acting.
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