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At Mehtani Law Offices, P.C., our Beverly Hills employment law attorneys know that California laws change throughout the year, and Senate Bill 699 (SB 699) and Assembly Bill 1076 (AB 1076) have combined to prohibit noncompete agreements — retroactively and in the future.
Here is what California employees need to know about the newest laws.
SB 699 and AB 1076: Prohibitions on Noncompete Agreements
Signed by California Governor Newsom on September 1, 2023, SB 699 prohibits employers from enforcing noncompete agreements considered void and unenforceable under the California Business and Professions Code, Section 16600.
Effective January 1, 2024, SB 699 states that any contract that is void under Section 16600 is unenforceable regardless of where and when the contract was signed — meaning an out-of-state employer that attempts to enforce a noncompete in California would be bound to the requirements of this law.
Expressly, Section 16660 should now be construed broadly to void all noncompete clauses in an employment context, regardless of how narrow they may be, unless they fall under one of the following three categories: Noncompetes associated with the sale of a partnership, dissolution of a partnership, or dissolution of limited liability interests.
In addition, AB 1076 adds new Section 16600.1, which provides that it is unlawful for employers to include noncompete clauses in an employment contract.
This bill applies retroactively as of Jan. 1, 2022; any individuals employed after this date with a noncompete clause must be notified that those noncompete clauses are now void.
Employers must render this notice by Feb. 14, 2024, to the individual’s last known address and email address.
Contact Our Experienced Employment Law Attorneys in Beverly Hills, California Today
If you believe a noncompete agreement has violated your workplace rights, contact our skilled employment lawyers in Los Angeles County at (310)-776-3590 at Mehtani Law Offices, P.C. to schedule a free consultation today to discuss your unique circumstances with a law firm that can help pursue real results for your case.