Non-competes in California
California sets its own rules for non-competes under Cal. Bus. & Prof. Code § 16600 (as amended by SB 699 and AB 1076, eff. Jan 1, 2024). Below is what that statute requires, verified against the primary source, plus the steps to take and where to read the law yourself.
The California statute
CA bans most non-compete agreements outright. SB 699 makes them unenforceable EVEN IF signed in another state; AB 1076 requires employers to notify former employees by Feb 14, 2024 that their non-competes are void. Limited exceptions for sale of business and partnership dissolution.
Read the California source text →How non-compete law works
Non-compete enforceability is decided state by state, and the range is enormous: some states void them outright for nearly all workers, others enforce them if "reasonable" in scope, duration, and geography. Where you WORK, and the law the agreement selects, both matter — and many signed non-competes are partly or wholly unenforceable.
Read the full non-compete law guide →
What to do in California, in order
- In California: find the restriction’s three dimensions in your agreement: how long, what geography, what activity.
- Check the law of the state where you actually work — not just the state named in the contract.
- Non-solicitation and confidentiality clauses are separate promises with separate rules; don’t assume they fall with the non-compete.
- Before taking a competing role, get the specific clause reviewed — the analysis below is general information, not legal advice for your situation.
Common questions about non-competes in California
I signed it — am I stuck in California?
Not necessarily. A signature doesn’t make an unenforceable restriction enforceable. If your state bans or limits non-competes, the clause may be void regardless of what you signed.
Does a non-compete apply if I’m laid off in California?
It depends on the state and the wording. Some states and courts are reluctant to enforce non-competes against workers terminated without cause; others enforce them regardless. Check both the clause and your state’s rule.
What’s the difference between a non-compete and a non-solicit in California?
A non-compete restricts who you can work for; a non-solicit restricts contacting former clients or recruiting former colleagues. Courts treat them differently — non-solicits survive in many places non-competes don’t.
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