Can My Employer Enforce a Non-Compete in California?

By Eugene Bruno on June 15, 2026

Many employees in El Cajon may be surprised to learn that the non-compete agreement they signed may not actually be enforceable under California law. Workers often encounter restrictive clauses when starting a new job, leaving a company, or entering severance negotiations. These agreements may lead to legal action if an employee joins a competitor, starts a competing business, or solicits former clients.

Fortunately, California has some of the strongest employee protections in the country regarding restrictive covenants. Under California law, most non-compete agreements are void and unenforceable. Recent legislative changes have strengthened those protections even further, especially for employees facing pressure from out-of-state employers attempting to enforce restrictive agreements.

The El Cajon workplace harassment attorney at Eugene Bruno & Associates helps California employees understand their rights and challenge unlawful employment practices. If you are dealing with a non-compete dispute, we would be happy to speak with you and clarify your options.

What Is a Non-Compete Agreement?

A non-compete agreement is a contract that restricts an employee’s ability to work for a competitor or start a competing business after leaving a company.

These agreements often attempt to prohibit employees from:

• Working for competitors within a certain geographic area
• Contacting former clients or customers
• Starting a competing business
• Recruiting former coworkers
• Using industry knowledge gained during employment

In many states, employers can enforce certain non-compete restrictions if they are considered reasonable in duration and scope, but California is different.

California Strongly Favors Employee Mobility

California has long maintained a public policy favoring open competition and employee freedom. Under Business and Professions Code § 16600, it states: “Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.”

Most non-compete agreements are unenforceable in California. This means employers generally cannot prevent employees from:

• Accepting jobs with competitors
• Starting their own businesses
• Using general industry knowledge and skills
• Continuing their careers after leaving a company

California courts repeatedly emphasize that workers should be free to pursue employment opportunities without unlawful restrictions.

California Non-Compete Law Offers Strong Employee Protections

Recent legislative updates significantly expanded employee protections against restrictive covenants. Two major laws, SB 699 and AB 1076, went into effect in 2024 and strengthened California’s stance against unlawful non-compete agreements. These laws give California one of the most employee-friendly legal frameworks in the country.

Senate Bill 699 prohibits employers from attempting to enforce non-compete agreements that are void under California law, even if the agreement was signed in another state. This matters because many employees in California work remotely for out-of-state companies or relocate from states where non-compete agreements are enforceable.

Before SB 699, some employers attempted to intimidate California workers by threatening lawsuits based on agreements governed by another state’s laws. Now, California employers and out-of-state employers operating in California can face liability for attempting to enforce unlawful restrictive covenants against California employees.

Assembly Bill 1076 reinforces California’s prohibition on non-compete agreements and imposes additional notice requirements on employers. Under AB 1076, employers must notify current and former employees if they were previously subject to unlawful non-compete clauses.

The law also codifies California’s broad interpretation of Business & Professions Code § 16600 and confirms that most post-employment restrictions are void, regardless of how narrowly drafted.

Are There Any Exceptions to California’s Ban on Non-Competes?

California recognizes a few narrow exceptions in which non-compete agreements may still be enforceable. One major exception involves the sale of a business.

If someone sells ownership interests in a business, California law may allow restrictions preventing the seller from immediately competing against the buyer within a reasonable geographic area. This exception exists to protect the value of the business being sold, including goodwill and customer relationships.

Non-compete restrictions may also apply during:

• Partnership dissolutions
• LLC ownership transitions
• Certain business ownership separations

What Happens When Employers Try to Intimidate California Employees?

Some companies use aggressive legal language or cease-and-desist letters to discourage former employees from joining competitors. Employees may fear litigation costs, damage to professional reputations, or disruption to new job opportunities. An experienced employment lawyer can review the agreement and help determine whether the employer’s threats are legally enforceable.

What If My Employer Asks Me to Sign a Non-Compete?

Many employees feel pressured to sign employment agreements without fully understanding their rights. If you are asked to sign a non-compete agreement in California, you should request time to review the agreement and consult an employment lawyer.

Employers may include unlawful provisions, hoping employees will not challenge them. Even if a non-compete clause is unenforceable, signing the agreement could still create future disputes or confusion.

Can Employers Be Liable for Unlawful Non-Competes?

Employers who knowingly attempt to enforce void agreements may face substantial legal consequences. This is particularly important for companies operating across multiple states that attempt to impose broad employment restrictions on California workers.

California’s recent legislative changes increase the risks employers face for using unlawful restrictive covenants. In these cases, employer liability may include civil penalties and employee compensation.

Speak With a Trusted El Cajon Employment Attorney

At Eugene Bruno & Associates, we work to protect employee rights in non-compete disputes while holding employers accountable for unlawful restrictive covenants and unfair workplace practices throughout El Cajon and Southern California.

Whether you were asked to sign a non-compete agreement, threatened with legal action, or terminated after accepting a new position, we can help you evaluate your rights and review your legal options.

Our law firm has helped over 5,000 satisfied clients, and we have an A Rating from the Better Business Bureau.

Call 1-888-BRUNO-88 (1-888-278-6688) to schedule a free consultation today.

Frequently Asked Questions About Non-Compete Agreements in California

Are non-compete agreements enforceable in California?

In most cases, no. Under Business and Professions Code § 16600, a non-compete agreement is generally void and unenforceable in California. The law strongly protects employee mobility and the right to pursue lawful employment opportunities.

What changed under the California non-compete law 2024?

Recent laws, including SB 699 and AB 1076, expanded protections for California workers. California’s 2024 non-compete law now prohibits many employers from enforcing out-of-state non-compete agreements against California employees. It requires certain employers to notify workers that unlawful restrictive covenants are void.

Can my employer sue me for working for a competitor?

An employer may still threaten legal action, but that does not mean the claim is legally valid. In many cases, California courts reject restrictive covenants that limit a worker’s ability to accept new employment. An employment lawyer can review your agreement and determine whether the employer’s claims are enforceable.

Are there any exceptions where non-compete enforceability may apply?

Yes. California recognizes limited exceptions involving the sale of a business, dissolution of partnerships, or certain ownership transitions. Outside of these narrow situations, most employee rights and non-compete protections remain strong under California law.

What should I do if my employer asks me to sign a non-compete agreement?

You should carefully review the agreement before signing anything. Request time to evaluate the document and consider speaking with an employment lawyer about your rights. Even if restrictive covenants are likely unenforceable, signing them could still create future legal disputes or intimidation tactics.

Can employers face liability for using unlawful non-compete agreements?

Yes. Employers who attempt to enforce unlawful restrictive covenants may face legal consequences under California law, including civil penalties and claims related to unfair business practices. Employees who are threatened or harmed by unlawful agreements may have legal remedies available to them.