On January 1, 2024, California officially began exporting its ban on noncompetes, nonsolicits, broad confidentiality agreements, and likely no-recruits to the rest of the country.
As Russell Beck has written, in September and October, California passed two laws that together will: (1) expand the scope of California’s ban on employee noncompetes and other restrictive covenants; (2) export California’s law to void contracts between non-California residents signed outside of California; (3) require companies to provide notice to their employees and certain former employees that their noncompetes are void; and (4) impose penalties for violations. According to the legislation, “California’s public policy against restraint of trade law trumps other state laws . . . .”
In this episode, John, Ben, and Russell discuss California’s new laws, what the laws purport to do, and what companies can do to limit the impact of the new laws.
Listen to us on Spotify or Apple Podcasts. Or, if you’re just looking for the feed, it’s here: Fairly Competing RSS feed.
And if you’re interested in hearing more on this legislation, here is a link to a brainstorming session on the new laws with over 40 of the leading trade secret / restrictive covenant / employee mobility lawyers from around the country: Responding to California’s New, Expanded, Anti Restrictive Covenant Laws.
Preparing for California’s newly expanded noncompete ban and anti-restrictive covenant laws
(Episode 23)