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Contracts in restraint of trade: noncompete agreements.

It became law on Oct 13, 2023.

CA AB 1076 · Assembly Bill · 2023–2024

Stage
Became law
Started in
Assembly
Sponsor
1
Latest action
Oct 13, 2023

What it does

Existing law voids contractual provisions by which a person is restrained from engaging in a lawful profession, trade, or business of any kind, except as otherwise provided. Existing case law, as established in the case of Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, interprets this provision to void noncompete agreements in an employment context and noncompete clauses within employment contracts, even if that agreement is narrowly tailored, unless an exception applies.

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Where it stands

This bill passed and is now law.

  1. Introduced (Done)

  2. Committee (Done)

  3. Floor (Done)

  4. Law (Done)

    Oct 13, 2023

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Who is involved

Sponsors

The lawmakers who put their names on it, lead sponsors first.

In the news

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Where it goes next

Once a bill is decided, the questions are about what is done with it in California.

Work with this bill

Contracts in restraint of trade: noncompete agreements. | 52