Hi, here’s your HR quickie for today, December 19th 2023.

California has always had restrictions on non-compete agreements.  Actually, almost to the point that they were simply a no-go across the board.

Basically a non-compete was deemed invalid unless it met some strict exception guidelines – and those mainly centered on transitioning ownership of a company, and the rights of the most senior members of the company.  So, in a phrase – they don’t apply to the majority of employees.

Well this year there are two new laws on the books that take effect on January 1st.

The first one actually just clarifies that (again, unless it meets the exception guidelines) non compete agreements or clauses are unlawful; and are declaimed void – and that goes for current employee arrangements and FORMER employees too.

Employers are required to notify – in writing – all current and former employees who were employed after January 1st 2022, and who had non-compete language either in their employment agreement or a separate agreement or some other document- well, you have to give them written notice that the non-compete is void.  And you have to give that notice by Feb 14, 2024.

And if that doesn’t furrow your brow – the other new law around non-competes simply reinforces that you can’t enter into, or try to enforce a non compete clause or agreement (and again, I mean one that doesn’t meet the exception), no matter where  it was signed.

So, in a nutshell – non compete agreements in California….forget about it!