The Official, Legal Goodbye to Non-Compete Agreements in California

At Romero Law, our trusted employment law attorneys in California know the prohibition of non-compete agreements is not new news. However, Senate Bill 699 (SB 699), signed into law by Governor Newsom on September 1, 2023, bolsters California’s prohibition of non-compete agreements in unique ways.

Here is what California employees need to know about their freedom to “void contractual provisions by which a person is restrained from engaging in a lawful profession, trade, or business of any kind, except as otherwise provided.”

California Employers Face Greater Risks When Having Employees Sign Non-Compete Agreements or In Seeking To Enforce Such Agreements

SB 699 is being signed into law under California Business and Professions Code section 16600.

The Code section explains how every contract restraining anyone from engaging in a lawful profession, trade, or business is void, except under limited statutory exceptions.

Business and Professions Code section 16600.5, which goes into effect on January 1, 2024, reiterates existing law and extends the reach of California’s restriction on non-compete agreements.

The new law:

• Provides that any contract void under Business and Professions Code section 16600 is unenforceable regardless of where and when the agreement was signed.
• Prohibits employers or former employers from attempting to enforce a void contract regardless of whether the contract was signed and the employment was maintained outside of California.
• Prohibits employers from entering a contract with an employee or prospective employee that includes a provision unenforceable under the Business and Professions Code section 16600.
• Provides that employees, former employees, or prospective employees may bring a private right of action for enforcement and, should they prevail, recover attorney’s fees.

Contact Our Employment Law Attorney at Romero Law

If you are being held to a non-compete contract that should be void, contact our experienced Los Angeles County employment law attorneys to discuss your unique workplace circumstances today.

Our employment law firm and bilingual staff offer services in both English and Spanish and are available now to discuss your case during a free consultation by calling (626)-396-9900 or contacting us online.