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Assembly Bill 1076 became effective January 1, 2024, and adds new Business and Professions Code §16600.1. The new California law makes it unlawful for an employer to include a noncompete clause in an employment contract or to require an employee to enter a noncompete agreement, absent an applicable narrow exception. Prior to this law, non-compete agreements and provisions were void and unenforceable rather than unlawful.  

The new law also places an affirmative obligation on employers to provide specific notice to certain employees by Valentine’s Day. No later than February 14, 2024, employers must deliver written notice to each current or former employee employed after January 1, 2022, who signed an employment agreement containing a noncompete provision. The notice must indicate that the noncompete clause or noncompete agreement the employee signed is void. Employers must deliver this notice to the last known address and email address the employee provided to the employer. 

The law specifies that a violation of these requirements constitutes an act of unfair competition under the California Business and Professions Code, which can include civil penalties of up to $2,500 for each violation.  

Employers with questions about this law or the notice requirements can contact the California Legal Services department at CAinfo@employerscouncil.org.