Non-Compete Agreements in California
How California law treats non-compete agreements, with the statute or official source.
Short answer: Generally void and unenforceable. Since January 1, 2024, it has been illegal for employers to enter into or try to enforce a void non-compete with California employees, even if it was signed outside California. Cal. Bus. & Prof. Code §§ 16600, 16600.1, 16600.5 (SB 699, AB 1076); California Attorney General consumer alert (Oct. 15, 2024)
| Non-compete agreements | Generally void and unenforceable. Since January 1, 2024, it has been illegal for employers to enter into or try to enforce a void non-compete with California employees, even if it was signed outside California. Employees can sue for damages, an injunction and attorney's fees. Only limited statutory exceptions apply (such as certain sales of a business). |
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Where to get help in California
- California Labor Commissioner's Office (Division of Labor Standards Enforcement), Department of Industrial Relations
- File a complaint or claim
More California employment law
- Minimum Wage in California
- Final Paycheck Laws in California
- Meal and Rest Break Laws in California
- Wrongful Termination in California
- Paid Sick Leave in California
- All California employment law rules
FAQ
Are non-compete agreements enforceable in California?
Generally void and unenforceable. Since January 1, 2024, it has been illegal for employers to enter into or try to enforce a void non-compete with California employees, even if it was signed outside California. Employees can sue for damages, an injunction and attorney's fees. Only limited statutory exceptions apply (such as certain sales of a business).
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.