California further tightens its grip on the use of post-employment non-compete clauses. Starting January 1, 2024, Senate Bill 699 allows lawsuits against employers attempting to include or enforce void non-compete provisions.
The newly enacted law is in response to the increasing trend of employers, both within and outside California, incorporating such clauses in their contracts. These clauses have reportedly deterred employees from changing jobs, curbing their freedom and hampering economic growth.
With the rise in remote work, the issue has become even more pronounced, as out-of-state companies recruit California talents and attempt to enforce these restrictive clauses.
Senate Bill 699 has introduced the California Business and Professions Code section 16600.5. Under this, non-compete provisions deemed void are unenforceable, irrespective of where and when they were signed by the employee. Moreover, even out-of-state employers cannot impose these provisions on employees working in California.
Notably, companies risk committing a civil violation by merely including these provisions in contracts or trying to enforce them. Victims — be it employees, ex-employees, or potential recruits, now have the power to sue for relief, damages, and even attorney’s fees.
This significant legislative change to the California non-compete clause is expected to spark a wave of litigation. However, it’s clear the core aim is to safeguard employees’ rights and fuel California’s economic growth by encouraging free competition and innovation.
If you believe your employment rights have been violated by non-compete clauses, don’t hesitate to contact the highly acclaimed labor law attorneys at Labor Law Advocates in California. We understand the importance of protecting your rights and securing your future. Take action and let us guide you through the process with our expertise and professionalism. Call our California employment lawyers today.
