In October 2023, California’s Governor signed Assembly Bill (AB) 1076 which added the new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions already are void under Business & Professions Code §16600.

Under AB 1076, employers must notify current employees and former employees (employed after January 1, 2022), that any noncompete agreement or noncompete clause contained within an agreement the current or former employee signed is void unless the agreement or clause falls within one of the statutory exceptions set forth in Business and Professions Code section 16600, et seq. The notices must be an individualized written communication to the employee or former employee, delivered to the last known address and email address the employee provided to the employer.

The changes to the law took effect on January 1, 2024, but employers have until February 14, 2024, to provide the required notices under the statute.