News & Analysis as of August 3, 2025

California

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

The (Less-Than-Golden) State of Confidentiality Provisions in California

Littler on 7/22/2025

It is well known that California takes a dim view towards restrictive covenants in the workplace. Business & Professions Code Section 16600 prohibits employee non-compete agreements, stating that “every contract by which...more

Employers Must Notify California Employees of Void Non-Competes

Stokes Wagner on 2/22/2024

California is not spreading the love to employers this Valentine’s Day. Employers’ deadline to give their California employees a notice that any non-compete agreements are void was February 14, 2024. Employers who fail to...more

New Legislation Extends California Noncompete Ban to Agreements Signed Outside the Golden State and May Impose Notice Obligations...

Foley & Lardner LLP on 10/3/2023

As we’ve previously written, California already takes a strong position against employee noncompete agreements. State law bans such agreements (with extremely limited exception) and imposes significant penalties on employers...more

Bill Would Authorize Disbarment Of Attorneys Who Enter Into Non-Competes With Their Employees

Allen Matkins on 3/29/2023

California lawyers are well aware of this state disfavors covenants not to compete. California Senator Kevin McCarty would like to increase the level of hostility by adding a provision to the Business & Professions Code...more

Court Of Appeal Affirms Enforceability Of Post-Termination Solicitation Ban In Employment Agreement

Allen Matkins on 2/1/2022

California is famously hostile to covenants not to compete. In fact, Section 16600 of the California Business & Professions Code provides "Except as provided in this chapter, every contract by which anyone is restrained...more

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