Ever Include Non-Compete Language in an Employment Agreement?

If you required an employee to sign a contract with a non-compete clause, you may be required to give notice to current and former employees.

Gov. Newsom signed Assembly Bill (AB) 1076 last fall, which was codified at Bus. & Prof. Code § 16600.1, and requires employers, prior to February 14, 2024, to notify all current employees and former employees employed after January 1, 2022, whose employment contracts contain a noncompete clause that does not satisfy one of the limited exceptions, that the noncompete clause or noncompete agreement is void.

The notice must be in a written individualized communication to the particular employee(s) and delivered to the last known address and email address of the current or former employee. A violation constitutes an act of unfair competition under Bus. & Prof. Code §§17200, et seq. We can help you determine if you must give notice and complete the process, but don’t delay.