California Strengthens Prohibitions on Noncompete Agreements for 2024
By Thomas G. Thornton – November 2023
Employers should be aware of significant new restrictions governing employment related noncompete agreements and clauses that go into effect in January 2024. As a result of the enactment of AB 1076, not only are noncompete clauses in the employment context void and unenforceable in California under Business and Professions Code section 16000, but the new Business & Professions Code section 16600.1 makes it unlawful to “include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement” (with very limited statutory exceptions). (Bus. & Prof. Code, § 16600.1, subd. (a).)