No — non-competes are generally void and unenforceable in California, and the rule has been largely the same for over a century. Business and Professions Code § 16600 generally declares void "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind," making California the most aggressive state in the country on this question. Recent legislation has tightened the rule further, extending the ban to customer non-solicits and to agreements signed in other states. For people who live or work in California and have signed a non-compete, the default rule under § 16600 generally provides that it cannot be enforced against them. The specifics still depend on your situation, and these rules and figures can change.
Are non-competes enforceable in California?
The points below describe what California law generally provides; how they apply depends on your specific agreement and situation.
- § 16600 — void by default: Almost all post-employment non-compete agreements are generally void and unenforceable in California. The narrow exceptions § 16600 carves out (sale of business, dissolution of partnership) generally do not apply to most employees.
- Customer non-solicits — also void: California courts have generally extended § 16600 to most customer non-solicitation agreements. The Edwards v. Arthur Andersen line of cases and AB 1076 (effective 2024) made this explicit — non-solicits that effectively prevent former employees from doing business with former customers are generally treated as void.
- Employee non-solicits — more nuanced: Non-solicits of former co-workers are sometimes upheld if narrowly tailored. The Loral Corp. line of cases allows some restrictions, but the post-AB 1076 trend is increasingly skeptical — and the outcome depends on how the clause is drafted.
- Trade secret protection — still available: Even without a non-compete, employers generally retain rights under the California Uniform Trade Secrets Act. Misappropriation of confidential information can generally be enjoined; competing in the same industry generally cannot.
- Out-of-state non-competes — also void: AB 1076 and SB 699 (2024) generally make it unlawful to enforce a non-compete against a California employee even if the contract was signed in another state.
- Notice requirement (2024): Employers who used non-competes with California employees were generally required to send notice by February 14, 2024 that the agreements are void. Under SB 699, failure to provide that notice is itself treated as unlawful.
- Remedies: § 16600.5 generally allows employees to recover attorney's fees and damages from employers who attempt to enforce a void non-compete.
Scripts to use
When a former employer threatens enforcement:
"Under California Business and Professions Code § 16600 and the 2024 amendments (SB 699 and AB 1076), the non-compete provision in my employment agreement is void and unenforceable. Any attempt to enforce it exposes the employer to liability for damages and attorney's fees under § 16600.5. I am asking that you withdraw the demand within 14 days."
When a new employer asks about a prior non-compete:
"I signed a non-compete with [former employer], but California § 16600 makes that agreement void as to my future California employment. I have a written notice from my prior employer confirming the agreement is void [if available], and counsel has advised me that the prior non-compete is unenforceable."
When the agreement is from an out-of-state employer:
"Under California SB 699 (effective 2024), a non-compete signed in [state] is unenforceable against me as a California employee, regardless of the choice-of-law provision. Please confirm in writing that the non-compete will not be enforced."
What should you document?
Many people gather the following so they (or counsel) can assess the situation:
- The non-compete agreement itself, with the signature page
- The choice-of-law and venue provisions in the agreement
- Any notice from the former employer about the void status of the agreement (required by Feb 14, 2024)
- Your California work history (showing you are a California employee)
- Any communications from the former employer attempting to enforce the agreement
- Your offer letter or contract with the new employer, if applicable
When should you escalate?
If a former employer attempts to enforce a non-compete, common next steps people take include:
- Consulting a California employment attorney. Many take these cases on contingency or hybrid fee arrangements, and § 16600.5 generally makes attorney's fees recoverable from the former employer.
- Checking whether the new employer wants to share counsel — the new employer can also be a target of tortious interference claims and generally has a parallel interest in defeating the non-compete.
- Preserving all communications. Threatening letters from a former employer's counsel are often the kind of evidence that supports § 16600.5 claims.
- Many people are cautious about delaying a start date or modifying job duties based on the non-compete unless counsel advises, since California's default rule generally favors the employee. What's right here depends on your situation.
California's non-compete rule is widely regarded as the most employee-favorable in the country. A demand letter referencing § 16600 and § 16600.5 frequently resolves disputes quickly — former employers often back down rather than face fee-shifting liability — though how any individual dispute plays out depends on the facts and the agreement.
Official sources
- California Legislative Information — Business and Professions Code § 16600 (non-compete contracts void)
- California Legislative Information — Business and Professions Code § 16600.5 (enforcement, damages, attorney's fees; SB 699)
- California Department of Industrial Relations — Division of Labor Standards Enforcement (Labor Commissioner's Office)