You’ve built your career, worked long hours, and it’s time for the next step. Now, you’re ready for a fresh start or a new challenge. Then you notice a clause in your employment contract threatens to hold you back. It’s called a non-compete, and just seeing that phrase can stop you in your tracks. That moment can feel frustrating, stirring anxiety about whether you can pursue the next opportunity you’ve earned.
You might feel cornered, unsure of your rights, and even afraid to make a move. Suddenly, what felt like progress feels blocked. You wonder: “Is this non-compete enforceable? If I’m a former employee, can an employer actually stop me from moving forward?”
Rest assured: In California, most non-compete clauses are expressly unlawful. If your employer is using one to pressure or threaten you, the law is clear: that clause holds no power. You have the legal right to pursue fresh opportunities and put your experience to use, without fear.
What Are Non-Compete Clauses and Why Do California Employers Use Them?
In the employment context, non-compete clauses (also known as a non-competition agreement or restrictive covenant) restrict your ability to work in a similar field or geographic area after leaving a job.
Employers often include these clauses to protect trade secrets, client lists, or proprietary processes. The idea is to prevent both former and current employees from helping direct competitors or starting rival businesses.
Non-compete clauses are often vague and written in complex legal jargon, making them confusing to the average worker. But the real impact is clear: They limit your freedom to earn a living.
Non-compete provisions may:
- Ban you from working in the same industry within a city, county, state, or entire region
- Set a time limit, during which you can’t take a similar job or work for competitors
- Prohibit you from starting your own business in a related field
While these restrictions may seem reasonable to companies, they can severely limit your career choices and earning potential. In other states, non-compete clauses in employment contracts may be valid. But here in the Golden State, these non-compete clauses directly conflict with California Business and Professions Code § 16600.
Under California Law, Most Non-Compete Clauses Are Illegal
Under California Business and Professions Code § 16600, non-compete agreements are void and illegal in most employment contracts. This rule applies across industries and job titles from entry-level new hires to senior executives.
What if you were tricked or pressured into signing one before the ban was enacted? . As a California employee, your rights are protected and such agreements are not enforceable.
This law bans any contract that prohibits or limits an employee’s right to pursue a “lawful profession, trade, or business of any kind.”
This simple but powerful statement means that, from the moment you signed, the non-compete clause in your employment agreement has no legal backing in California. Employers can’t legally limit employee mobility.
Two more recent laws also prevent companies from using non-compete agreements against workers, no matter where the agreement was signed.
Senate Bill 699 prohibits employers from enforcing non-competes
This law prohibits employers from enforcing non-compete clauses, even if you signed the contract in another state. It also gives California employees the right to sue for damages and attorney’s fees if their employers attempt to restrict their employment based on non-compete clauses.
Assembly Bill 1076 requires employers to notify employees
This new law requires employers to send written notice to both current California employees and former employees hired after January 1, 2022, stating that any non-compete provisions they signed are void under California law and that California courts will not uphold such contracts.
What If You Already Signed a Non-Compete Clause?
You’re not stuck just because you previously signed a contract with a noncompete clause. Under California law, even if you signed a contract with a non-compete clause, it still cannot be enforced.
Still, even though the law prohibits employers from doing so, it’s common for employers to try to enforce these clauses or to pressure employees to sign noncompete agreements as a condition of being hired for a job.
Such pressure can be intimidating, especially if it comes with:
- Threats of a lawsuit if you accept a new job
- Cease and desist letters warning you to stay away from competitors
- Intimidating calls or emails from HR or legal teams
These scare tactics are meant to make you second-guess your rights. If your employer tries this, don’t panic. Seek the legal counsel of a skilled employment law attorney. An employment attorney can shut these efforts down immediately, and potentially hold your employer accountable for trying.
Limited Exceptions: When Non-Competes May Apply
The law does recognize a few narrow contexts where non-competes remain valid. There are only a few scenarios where non-compete restrictions are allowed under California law. These involve business ownership, not everyday employees.
These exceptions include:
- Sale of a business: When you sell your company – or your shares – you may agree not to launch a competing enterprise in the same market. This protects the buyer’s investment and is allowed because you negotiated as an owner, not as an employee.
- Partnership dissolution: Business partners can agree, upon ending a partnership, not to start a similar venture within an agreed-upon area. Since partners share power and decision-making, they can set terms among themselves.
- LLC member separation: Members exiting a limited liability company may enter into a non-compete covering LLC-related activities. Terms must relate specifically to ownership interests, not employment duties.
If you never sold part of a business, never dissolved a partnership, and never left an LLC in this way, these exceptions do not apply. As an employee, you are likely free to seek new opportunities.
Other Clauses That Could Restrict You
A non-compete ban isn’t the only contract that can affect your job search. Employers often include additional restrictions that, while more subtle, can still impact your freedom to work.
Consider two examples:
- Non-solicitation clauses prevent you from contacting or recruiting former clients, customers, or coworkers. If written too broadly, they can be interpreted as unlawful under California law, especially when they prevent normal competition.
- Confidentiality or nondisclosure agreements (NDAs) restrict you from sharing private business information. NDAs are generally enforceable, but they cannot be used to hide illegal behavior or block you from talking about working conditions or wages.
Allred, Maroko & Goldberg Stands With California Workers
Allred, Maroko & Goldberg proudly represents employees. We know the frustration and fear that can arise when outdated contract language tries to clip your wings and limit your opportunities. That’s why we pour our full resources into protecting your right to earn a living, unburdened by unlawful restrictions.
When you choose Allred, Maroko & Goldberg, we provide:
- Rapid response: You don’t need to face an employer’s pressure alone or unprepared. From the moment you hire us, we jump into action, gathering documents, drafting legal notices, and anticipating empty threats.
- Personalized strategy: We don’t believe in one-size-fits-all solutions. We listen to your story, assess your contract, and craft a clear plan – whether that means swift negotiation, a powerful cease-and-desist letter, or confident courtroom advocacy.
- Relentless advocacy: If it comes to litigation, we fight with determination and integrity. We’re accustomed to standing up against large legal departments and winning – on principle and on the merits of California law.
Your career and your sense of agency are far too important to entrust to anyone less dedicated. At the law firm of Allred, Maroko & Goldberg, you’re not just another case file on the shelf; you’re a valued professional whose employment rights we are proud to defend.
Your Next Move: Break Free and Thrive
Don’t let an invalid non-compete clause stand between you and your future. You have the right to pursue a new role, start a business venture, or simply leave on your own terms – without fear.
At Allred, Maroko & Goldberg, our employment law champions will stand with you every step of the legal process. We’ll handle the legal fight so you can focus on moving forward.
Ready to reclaim your career and your peace of mind? Call 323-746-1853 today to schedule a free confidential consultation.