California Enforceability
California Non-Compete Agreement
California has one of the strongest non-compete bans in the country: virtually every employment non-compete is void, no matter how narrowly it's written.
Is a non-compete enforceable in California?
California is the strictest non-compete state in the country. Business and Professions Code §16600 voids any contract that restrains a lawful profession, trade, or business — and the California Supreme Court (Edwards v. Arthur Andersen, 2008) confirmed this applies broadly, rejecting the 'narrow restraint' exception some other states use.
Two 2024 amendments closed the last common workarounds: SB 699 makes clear an out-of-state non-compete is still void if it restrains someone from working in California, and AB 1076 says employers commit a civil violation just by including a void non-compete in a contract — they don't even need to try to enforce it.
If you're in California, a non-compete clause in your employment contract is almost certainly unenforceable regardless of what it says. Employers here typically protect trade secrets and client relationships through narrowly drafted confidentiality and non-solicitation agreements instead, which are treated differently under California law.
Reference: California Business and Professions Code §16600. This is general educational information, not legal advice — confirm current California requirements before relying on a non-compete agreement.
What California requires for enforceability
- Section 16600 voids any contract restraining someone from engaging in a lawful profession, trade, or business — courts read this broadly, not narrowly.
- It doesn't matter how reasonable the time period or geographic scope is — narrow tailoring does not save a California employment non-compete.
- As of 2024 (SB 699), a non-compete signed in another state is still void and unenforceable if it restrains someone from working in California.
- As of 2024 (AB 1076), employers who even include a void non-compete in an employment contract — let alone try to enforce one — commit a civil violation.
Recent changes to watch in California
Two 2024 laws (SB 699 and AB 1076) closed remaining loopholes: out-of-state non-competes can no longer be used against California workers, and employers face civil liability just for presenting a void non-compete.
How to create your California non-compete agreement
- 1. Open the iRunDocs non-compete generator with California pre-selected as the governing state.
- 2. Enter employer, employee, restriction period, geographic scope, and consideration details.
- 3. Review the PDF preview, then download your document.
- 4. Have both parties sign — and if you're unsure whether your specific terms will hold up in California, have an employment attorney review it before relying on it.
Frequently asked questions
Are non-compete agreements legal in California?
No, not in the employment context. Business and Professions Code §16600 voids virtually every employment non-compete, and California courts interpret this broadly regardless of how narrow the restriction is written.
Can an out-of-state non-compete be enforced against a California employee?
No. As of 2024 (SB 699), a non-compete is void and unenforceable against a California worker even if it was signed in another state under that state's law.
What can California employers use instead of a non-compete?
Narrowly drafted trade secret/confidentiality agreements and, in some circumstances, non-solicitation agreements — these are evaluated differently than a direct restraint on working for a competitor.
Non-compete enforceability in other states
iRunDocs provides document tools and educational information. It is not a law firm and does not provide legal advice.