Noncompetes Are No Longer Enforceable in California—Here’s How It Protects You

By Eugene Bruno on May 29, 2025

Noncompete agreements have long been a point of legal tension in California. However, recent legal changes have official that they’re no longer enforceable. Whether you’re an employee who signed one in the past or you’re currently an employer looking to stay compliant, it’s crucial to understand how these rules affect you.

What Is a Noncompete Agreement?

A noncompete agreement is a clause that typically restricts an employee from working for a competitor or starting a similar business after leaving a job. These agreements are common in many industries, particularly in tech, healthcare, and sales.

California has always treated noncompete clauses as legally questionable, and now, the state has made its position loud and clear. Noncompetes are not just unenforceable—they’re illegal.

What’s Changed in California?

Two recent laws, SB 699 and AB 1076, have transformed California’s stance on noncompete agreements. Here’s what you need to know.

SB 699 – Noncompete Agreements Are Void, Everywhere

Under this law:

• Any noncompete agreement is void in California, regardless of where or when it was signed.
• If an employee moves to California from another state, the noncompete they signed elsewhere cannot be enforced here.
• Employers who attempt to enforce a noncompete in California can face legal consequences.

AB 1076 – Required Written Notices to Employees

This law adds teeth to the ban by requiring employers to take action:

• Employers must notify employees and former employees (who were employed after a specific date) in writing that any noncompete agreements in their contracts are void.
• The notice must be sent to the employee’s last known mailing address or email.

Failure to comply could expose businesses to lawsuits or penalties.

What This Means for Employees

If you’re a worker who signed a noncompete at any point in your career, the good news is that it’s no longer enforceable in California. You now have the right to:

• Work for a competitor or start your own business without fear of retaliation or lawsuit.
• Challenge any employer who tries to restrict your job opportunities based on an old noncompete agreement.
• Seek legal help if you believe your rights have been violated.

These laws are designed to protect your freedom to work and pursue new business opportunities without unnecessary restrictions.

Still Have Questions? We’re Here to Help.

If you’re an employee who’s been asked to sign a noncompete agreement or if a former employer is trying to enforce one, you don’t have to navigate it alone.

At Eugene Bruno & Associates, we fight for workers’ rights. Our team is dedicated to helping employees understand their legal options, push back against unfair restrictions, and hold employers accountable.

Contact us today at 1-888-BRUNO-88 (1-888-278-6688) for a free consultation with a San Diego employment law attorney. Let’s make sure your next move is on your terms.