Somewhere in your onboarding paperwork sits a clause saying you can't work for a competitor for a year after leaving. In California, that clause is void - not "hard to enforce," not "usually beatable" - void, under Business and Professions Code section 16600. And after two laws passed in 2023-2024, the tables fully turned: employers who so much as attempt to enforce a non-compete against a California worker can owe damages and attorney's fees to the worker. If a non-compete is shaping your job search right now, this page is your exit.
The Baseline: Void, With Narrow Exceptions
Section 16600 voids contracts that restrain anyone from engaging in a lawful profession, trade, or business. The genuine exceptions live in the sale-of-a-business context - an owner selling a company can agree not to compete with what they sold. For ordinary employees, the clause is dead on arrival, and so are its cousins when they operate as restraints: broad non-solicitation clauses and "garden leave" arrangements built to keep you off the market.
What Changed: SB 699 and AB 1076
Two upgrades made California's rule the strongest in the country. SB 699 (section 16600.5) makes the clause void regardless of where or when it was signed - the Texas contract from your old Texas job cannot follow you into a California role - and gives workers a private right of action: sue the employer that enters into or attempts to enforce one, and recover damages plus attorney's fees. AB 1076 went further: it is now unlawful to even INCLUDE a non-compete in an employment contract, and employers were required to send written notice by February 14, 2024 to current and former employees (hired after January 1, 2022) telling them their non-compete clauses are void. If you never got that notice and your contract has the clause, your employer is already out of compliance.
The Threat Letter Playbook - and Your Counter
Void clauses still do damage through fear: the exit-interview reminder, the cease-and-desist to your new employer, the recruiter who backs off. Employers count on workers not knowing the law. Your counter: don't quietly narrow your job search, and don't panic when the letter arrives - forward it to a lawyer. Under current law, that letter may itself be the basis for YOUR claim, with your fees paid by the employer who sent it. Interference with your new job offer over a void clause is exactly the conduct the private right of action was built for.
What Remains Fair Game
Trade-secret law still applies - taking customer databases, source code, or genuinely secret information is a separate problem no statute blesses. Confidentiality obligations about actual trade secrets survive. The line: your skills, experience, relationships, and general know-how leave with you; their secret files don't. Leave clean and the non-compete has nothing left to threaten.
If This Is Live for You Right Now
Signing-stage: you can point to 16600 - and know that the clause is void even if you sign. Offer-stage with a scary letter in play: get advice the same week; your new employer's counsel will care what yours says. Already turned down work because of a clause: that damage may be compensable. Free, confidential: 1-800-371-3088.
Legal Disclaimer: This page is provided for general informational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. The information on this page reflects California law as of 2026 and may change. If you believe your rights have been violated, please consult a licensed California employment attorney to evaluate your specific situation.