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949-266-0880Non-compete clauses in employment contracts may make you hesitate, as they dictate where you can't work after your current job ends.
These legal provisions, known as non-compete agreements, seek to limit your ability to work for competitors or start a similar business for a specific period and within a certain geographic area after employment.
While these clauses create a perceived boundary around your future career, California law presents a different legal framework. If you're facing a non-compete in California, this MJB Law Group guide offers insights into potential legal solutions.
A non-compete clause is a provision in a contract where an employee agrees not to enter into competition with the employer after the employment period is over. It often limits time, geography, and industry involvement.
Employers often implement non-competes to:
Sounds fair, right? In theory, yes… but in practice, especially in California, it's a different story.
Imagine leaving a job only to be told you can’t work in your field for a year — or in your city! That’s the kind of restrictive clause that might appear in a non-compete agreement. And unless you know your rights, you might think you’re legally bound to it.
Let’s get straight to the point: non-competes in California are generally unenforceable. Why? Because California believes in mobility, innovation, and freedom of employment. It’s not just a moral stance — it’s the law.
This code explicitly 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."
In simpler terms — no, you can’t block someone from working.
The Golden State thrives on talent fluidity. Restricting workers limits innovation, especially in fast-paced sectors like tech, media, and healthcare.
California’s booming economy is often credited to its anti-non-compete philosophy — fostering healthy competition and letting professionals move freely between opportunities.
Dating back to the 1800s, California's legislature recognized the harmful effects of non-compete clauses and embedded worker-friendly rules in its business laws.
One key case — Edwards v. Arthur Andersen LLP (2008) — cemented the state’s hardline stance: non-competes are void, period.
While other states may allow conditional enforcement, California stands firm. Even federal movements toward non-compete limitations don’t quite match California’s zero-tolerance policy.
It’s not a gray area — it’s black and white. Unless a rare exception applies, non-compete clauses are invalid in California.
There are three major exceptions:
When selling a business, the seller may agree not to compete with the buyer within a reasonable scope.
If a partnership dissolves, former partners can agree not to compete with the partnership’s continued operations.
Similarly, members of a dissolved LLC can agree to limitations post-dissolution — but again, within reason.
If you’re handed a non-compete to sign in California… walk away. You’re not legally obligated to agree — and employers know it.
Employers can't dangle your employment like a carrot and force a signature. If they do, they're already on shaky legal ground.
Take action:
Instead of non-competes, California employers are encouraged to:
NDAs and confidentiality agreements are 100% legal and enforceable when drafted correctly — and far less controversial.
If you add a non-compete anyway?
This law prohibits employers from attempting to enforce non-competes — even if signed out-of-state.
As of 2024, employers must notify employees in writing if they signed a non-compete that’s void under California law.
Violations come with:
Protect sensitive business info without restricting career mobility.
These limit former employees from poaching clients or coworkers — still enforceable in narrow, lawful scopes.
Clearly define what belongs to the company — code, designs, strategies — and secure your competitive edge lawfully.
California courts routinely invalidate agreements even if signed elsewhere.
It gets tricky when companies try to use forum-selection clauses to push cases into more employer-friendly states.
Employers can be sued for attempting to enforce void clauses.
Short answer: no, not if the employee works in California.
You’re protected. Moving to California can void your prior non-compete.
These clauses often get tossed by California courts — protecting employee rights above all.
Innovation thrives on freedom. Tech hubs like Silicon Valley oppose non-competes because they stifle creativity and movement.
Think of how many startups spun off from Google, Apple, or Facebook — that’s possible thanks to California’s open job market.
Many other states are starting to follow suit… but California paved the way.
Yes — non-compete clauses for contractors are usually void under §16600 too.
Freelancers should carefully scan for any “competition restrictions” masquerading as NDAs or exclusivity clauses.
You’ll want an attorney from MJB Law Group who knows the nuances of non-competes in California — someone who lives and breathes employment law.
Before you sign, try:
Avoid using prohibited language altogether. Consult with legal professionals who understand California’s nuances.
The fewer gray areas, the better. Clear, lawful contracts reduce risk for everyone involved.
When it comes to fighting illegal non-competes, MJB Law Group stands tall. As a California employment and injury law firm, MJB specializes in protecting workers who’ve been wronged.
Whether you’re facing an employment issue such as wrongful termination or a non-compete threat, MJB Law Group is here to level the playing field and fight for your justice. Contact us.
California doesn’t just discourage non-compete agreements — it outright bans them in most cases. That’s not just good news for employees — it’s a bold statement about innovation, freedom, and fairness.
Whether you're negotiating a job offer, planning to switch employers, or reviewing a contract, remember: con-competes in California are usually void. Know your rights, and don’t be afraid to stand your ground.
And if you need help? MJB Law Group is ready to fight for you.
