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An employer cannot prevent you from working for a competitor or starting your own business in California after leaving a job, even if you signed an agreement elsewhere. Contact a Los Angeles non-compete agreement lawyer to discuss your specific case. Schedule your free consultation today.
California law strongly protects employee mobility. In most cases, noncompete agreements are completely unenforceable. That means your previous employer cannot stop you from accepting a new job, starting a business, or working in the same industry in California just because you signed a noncompete that was created and signed outside the state.
Many other states allow employers to include limited noncompete clauses to protect their business interests. However, when a person moves to California, the state’s laws override those agreements. California courts believe workers should be able to earn a living and choose their career paths without unnecessary interference. Even if your old contract says that another state’s laws apply or that any disputes must be handled in that state, California judges usually refuse to enforce those provisions when the employee now works here.
California has recently strengthened its stance against noncompetes. As of 2024, under Senate Bill 699 (SB 699) and Assembly Bill 1076 (AB 1076), it is illegal for employers to enter into or attempt to enforce noncompete agreements, even if the contract was signed outside California. Employers must also notify current and former employees that any such provisions in their contracts are void. Violating these laws can expose employers to civil penalties and potential lawsuits.
There are a few narrow exceptions where a noncompete may still be valid. These typically involve people who sold a business or partnership and agreed not to compete with the buyer for a set time. Outside of those business sale scenarios, California employers generally cannot use noncompete clauses against employees.
Employers are not completely unprotected and still have the right to safeguard legitimate business interests through:
The difference is that these protections target misuse of information, not the employee’s right to work somewhere else.
Some companies may still threaten to sue or send a cease-and-desist letter to intimidate you into leaving a new job or avoiding certain clients. While an employer can technically file a lawsuit, California courts almost always dismiss these cases quickly. Judges recognize that noncompete agreements go against state policy, and they rarely allow out-of-state employers to enforce them once an employee is working here.
If your old Los Angeles employer files a non-compete agreement claim or threatens one, do not ignore it. Keep records of every communication and contact a California employment attorney as soon as possible. A non-compete attorney in Los Angeles can respond on your behalf, protect your job, and, if necessary, seek dismissal of the case. Contact us to discuss your legal options today at the Aegis Law Firm.