Last year, the California legislature enacted AB 1075 (Bauer-Kahan) which declares it to be unlawful "to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that does not satisfy an exception in this chapter." Cal. Bus. & Prof. Code § 16600.1(a). "This chapter" is a reference to chapter 1, part 2, Division 7 of the Business & Professions Code. It is unclear the legislature felt it necessary to declare such clauses unlawful in employment contracts when Section 16600 already provided that "Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void."
AB 1075 also added the following notification requirement:
(1) For current employees, and for former employees who were employed after January 1, 2022, whose contracts include a noncompete clause, or who were required to enter a noncompete agreement, that does not satisfy an exception to this chapter, the employer shall, by February 14, 2024, notify the employee that the noncompete clause or noncompete agreement is void.
(2) Notice made under this subdivision shall be in the form of a written individualized communication to the employee or former employee, and shall be delivered to the last known address and the email address of the employee or former employee.
Cal. Bus. & Prof. Code § 16600.1(b). There is at least one rather obvious problems with this requirement - it seemingly applies to contracts regardless of where they were entered into or where they are to be performed. In fact, another bill, SB 699 (Caballero), enacted last year by the legislature declares "Any contract that is void under this chapter is unenforceable regardless of where and when the contract was signed." Cal. Bus. & Prof. Code § 16600.5(a).
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