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Non-Compete Laws in California

California voids employee non-competes no matter how narrowly tailored, bars employers from entering into or enforcing them even if signed out of state, and required employers to tell affected workers by February 14, 2024 that their clauses are void.

Last checked . General information, not legal advice.

California at a glance

Status
Banned
Bus. & Prof. Code 16600 voids any employee non-compete that does not fit a statutory exception, such as the sale of a business.
Enforceable against employees
No
Void regardless of where and when the contract was signed (Bus. & Prof. Code 16600.5).
Advance notice required
Not applicable (banned)
Employers had to notify current and certain former employees by February 14, 2024 that existing non-compete clauses are void.

Sources

Last checked

The rules in California

Are employee non-compete agreements banned, restricted or enforceable in California?

Status in California: Banned. Bus. & Prof. Code 16600 voids any employee non-compete that does not fit a statutory exception, such as the sale of a business.

Can an employer enforce a non-compete against an employee in California?

No. Enforceable against employees in California: no. Void regardless of where and when the contract was signed (Bus. & Prof. Code 16600.5).

Does California require employers to give advance notice of a non-compete?

Not applicable (banned). Advance notice required in California: not applicable (banned). Employers had to notify current and certain former employees by February 14, 2024 that existing non-compete clauses are void.

Where do the California non-compete laws come from?

The rules above come from Cal. Bus. & Prof. Code 16600, Cal. Bus. & Prof. Code 16600.1 and Cal. Bus. & Prof. Code 16600.5. Each source is linked on this page. We last checked them in October 2026.

Good to know

Since 2024, a worker may sue an employer that enters into or tries to enforce a void non-compete and recover attorney's fees (Bus. & Prof. Code 16600.5).

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.