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Noncompete clauses or agreements, with limited exceptions, are unenforceable in California per California Business and Professions Code 16600. Two new pieces of legislation, Senate Bill 699 and Assembly Bill 1076, were signed into law by Governor Newsom to make this prohibition more known and punish employers who require their employees to sign such an agreement. Senate Bill 699 prohibits an employer from placing a voidable noncompete clause in a contract with an employee or prospective employee and establishes that an employer who violates this law commits a civil violation. Assembly Bill 1076 requires employers to notify current and former employees who were employed after January 1st, 2022, who were provided a noncompete clause or agreement, in writing by February 14, 2024, that the noncompete clause or agreement is void. Individuals should review their hiring documentation to make sure they are complying and if they have more questions about these changes, should seek independent legal counsel.
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