Ross Runkel

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California hammers noncompetes

Employer-employee noncompete agreements are already void in California.
So what's next? More legislation.

1.  Beginning January 1, 2024, out-of-state agreements are void.

"Any contract that is void under this chapter is unenforceable regardless of where and when the contract was signed."

2.  Beginning January 1, 2024, it's unlawful to attempt to enforce a void noncompete.

"An employer or former employer shall not attempt to enforce a contract that is void under this chapter regardless of whether the contract was signed and the employment was maintained outside of California."

3.  Beginning January 1, 2024, it's unlawful to enter into a contract with a void noncompete.

"An employer shall not enter into a contract with an employee or prospective employee that includes a provision that is void under this chapter."

4.  There are remedies for the above.

"An employee, former employee, or prospective employee may bring a private action to enforce this chapter for injunctive relief or the recovery of actual damages, or both." Oh, yes, also attorney fees and costs.

5.  A bill in the works – certain to become law – says
(a) it will be unlawful to include a void noncompete in an employment contract, and
(b) require employers to notify current and former employees in writing by February 14, 2024, that any existing noncompete clause or agreement is void.