SB 699 and AB 1076: California Enacts Further Prohibitions on Noncompete Agreements
California is expanding its longstanding prohibition on noncompete agreements in 2024, in some of the most impactful legislative changes California employers should address in the new year. Effective Jan. 1, 2024, two new laws limiting restrictive covenants will extend the state’s consistent trend toward encouraging employee mobility and open competition. Senate Bill 699 prohibits employers from entering into noncompete agreements regardless of where and when the agreement was signed. And Assembly Bill 1076 expressly makes it unlawful for employers to enter into noncompete agreements and imposes steep fines and onerous notice requirements for violations. Together, these laws significantly limit the remaining potential for enforcement of noncompetition agreements in California.
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