Non-compete Clauses Prohibited



The Federal Trade Commission (FTC) recently released a Final Rule banning most non-compete agreements. However, California law goes much further than the federal rule. After January 1, 2024, employees in California can sue their employer for imposing or trying to enforce a non-compete against them, even if the non-compete was entered in another state where it would have otherwise been enforceable.

State law also requires employers to provide individualized, written notice to current and former employees (who were employed at any time after January 1, 2022, and have signed agreements containing non-compete clauses) by February 14, 2024, that any prior non-compete covenants or non-solicitation covenants violating the law are void. The notice must be delivered to the last known address and the email address of the employee or former employee.