Work · Non-Compete Agreements
Are Non-Competes Enforceable in California?
Whether an employee non-compete holds up in California, any income threshold that voids one, the exceptions and carve-outs, and how the state compares after the 2024 to 2025 changes. Cited to the statute or the controlling law.
The rules and exceptions in California
What makes a non-compete enforceable here, when it is void, and the carve-outs for particular workers or agreements.
The core §16600 ban is old and stable, but its enforcement teeth are new: AB 1076 (notice duty) and §16600.5 (out-of-state reach) took effect January 1, 2024. Confirm those provisions if the timing matters to your case.
| The rule in this state | What it means |
|---|---|
| Void by statute | Section 16600(a) voids any contract restraining a lawful profession, trade, or business, and §16600(b)(1) directs courts to void a non-compete "in an employment context, or any noncompete clause in an employment contract, no matter how narrowly tailored." |
| Void even if signed out of state | Section 16600.5 makes a void non-compete unenforceable against a California resident even if it was signed elsewhere, and an employer may not try to enforce it. |
| Employer must notify | Under AB 1076, employers had to send written notice by February 14, 2024, telling current and former employees their non-competes are void. Trying to enforce a void non-compete is itself a violation. |
| Exceptions and carve-outs | What it means |
|---|---|
| Sale of a business | An owner who sells a business and its goodwill can be bound by a non-compete under §16601. This is a true exception to the ban. |
| Partnership or LLC dissolution | Partners (§16602) and LLC members (§16602.5) may agree not to compete on dissolution or dissociation. |
| Trade secrets still protected | The ban does not license taking trade secrets. Employers protect confidential information through NDAs and the Uniform Trade Secrets Act instead of non-competes. |
What you can do right now
Concrete, neutral steps if you signed or were asked to sign a non-compete in California. This is legal information, not legal advice.
- Treat an employment non-compete as void
If you work in California, an employee non-compete is unenforceable, even a narrow one. You generally cannot be stopped from taking a competing job.
- Keep the written notice if you got one
Employers were required to notify employees that their non-competes are void. If you received that notice, keep it. If a former employer now threatens to enforce the clause anyway, that attempt is itself unlawful.
- Do not take trade secrets or confidential files
The ban frees you to compete, not to take the employer’s trade secrets or client lists. Leave confidential material behind to avoid a separate trade-secret claim.
- Talk to a California employment lawyer if pressured
If an employer threatens suit over a non-compete, a licensed California employment attorney can confirm it is void and respond. The State Bar can refer you to one.
Whether a non-compete can be enforced against you turns on its exact terms and your role. This resource can connect you with a licensed employment attorney who can review it.
→ State Bar of California — Need Legal HelpThis is general legal information, not legal advice. A non-compete is different from an NDA or a non-solicitation clause, and enforceability turns on the specific facts, so confirm your situation with a licensed attorney.
What California workers get wrong about non-competes
California is the clearest state in the country on this: an employee non-compete is void, and how carefully it was drafted does not matter. Business and Professions Code §16600 voids any contract restraining a lawful trade, and a 2024 amendment spelled out that a non-compete in an employment context is void "no matter how narrowly tailored." The state went further and gave the ban teeth. Section 16600.5 reaches agreements signed out of state when the worker is a California resident, and AB 1076 required employers to notify employees by February 2024 that their non-competes are void, making an attempt to enforce one its own violation. A few real exceptions survive, chiefly the sale of a business and the dissolution of a partnership or LLC. The ban does not let you walk off with trade secrets, which employers still protect through NDAs. If a former employer waves a non-compete at you, in California it is almost certainly worthless.
Common questions
Are non-compete agreements enforceable in California?
No. Under Business and Professions Code §16600 an employee non-compete is void, no matter how narrowly written. A 2024 amendment made that explicit for the employment context, and the state added a notice duty and out-of-state reach.
Can a company enforce a non-compete I signed in another state?
Generally no, if you are a California resident. Section 16600.5 makes a void non-compete unenforceable here even if it was signed elsewhere, and an employer may not try to enforce it against you.
Are there any non-competes that still work in California?
Yes, a few. A non-compete tied to the sale of a business and its goodwill (§16601), or to the dissolution of a partnership or LLC, can be enforceable. Ordinary employee non-competes cannot.
Does the ban mean I can take client lists to a new job?
No. The ban frees you to compete, not to take trade secrets or confidential client information. Employers still protect that through NDAs and trade-secret law, so leave confidential material behind.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.