Roses are red,
Violets are blue,
You signed a noncompete,
That may not be true.

Last year, California lawmakers double-downed on the state’s hostility to noncompete agreements. One of the new provisions requires written notice to current and former employees that their noncompete is void – unless an exception applies – by Valentine’s Day (February 14, 2024).

Two New Bills Restricting Noncompetes in California

First, as covered in our Legislative Reference Guide, SB 699 extends the reach of the state’s ban on noncompetes to contracts signed out of state; creates a private right of action for employees whose agreements include restrictive covenants and provides for attorney fees for any current, former, or even prospective employee who successfully brings suit against an employer’s use of those restrictive covenants.

Second, AB 1076, codifies the 2008 Edward v. Arthur Andersen decision that invalidated all employment noncompetes, including narrowly tailored ones, unless they satisfy a statutory exception. In addition, impacting your Valentine’s Day plans, the legislation requires California employers to individually notify current and former employees employed since January 1, 2022 in writing by February 14, 2024 that their noncompete clauses are void. Individualized notice is required to the employee’s last known mailing and email addresses.Continue Reading No Love Lost: California’s Continued Crackdown on Noncompetes Requires Breakup Letters Sent Before Valentine’s Day