California employment / contractor clauses

Is a non-compete enforceable in California?

Job offers and freelance agreements still often include non-compete language copied from other states. In California, that language is frequently void—but you should still read what you are asked to sign and get advice for high-stakes situations.

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Direct answer

Generally no for employment. California Business and Professions Code §16600 voids contracts that restrain someone from engaging in a lawful profession, trade or business, except limited statutory exceptions (such as certain sales of a business or partnership/LLC withdrawals). Amendments effective January 1, 2024 (AB 1076 and SB 699) make clear that employment non-competes are void even if narrowly tailored, require notice in some cases, and restrict attempts to enforce void covenants even when signed outside California. Narrow exceptions and other restrictive covenants (for example some confidentiality terms) still need a case-specific reading. This is general information, not legal advice.

Last reviewed November 2026

What the statute says (high level)

§16600 baseline

Except as provided in the chapter, every contract that restrains someone from engaging in a lawful profession, trade or business of any kind is to that extent void.

AB 1076 (2023)

Codifies that employment non-competes are void no matter how narrowly tailored (unless a statutory exception applies), makes including a void non-compete unlawful, and required certain notice to current and recent former employees by February 14, 2024.

SB 699 (2023)

Provides that void contracts under the chapter are unenforceable regardless of where or when signed, and restricts employers from attempting to enforce them even if employment was outside California, with civil remedies including possible attorney’s fees for prevailing employees.

Still read the whole agreement

Non-solicit, confidentiality, IP assignment and choice-of-law clauses can still matter. Upload the offer or contractor agreement to flag related risks in plain English.

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Frequently asked questions

What about selling a business?

California’s chapter includes limited exceptions (for example certain agreements connected with the sale of goodwill of a business, and some partnership or LLC situations). Those are narrow; do not assume a job offer fits them.

I signed in another state but work in California

SB 699 addresses attempts to enforce void non-competes regardless of where the contract was signed or employment was maintained. Outcomes still depend on facts—talk to a California employment lawyer for your case.

Is this legal advice?

No. Contract Checked gives general information and an AI reading of your document. It does not create an attorney-client relationship. For a dispute or a decision with a lot of money at stake, talk to a licensed attorney or a local tenant or worker organization.

Can Contract Checked review my document?

Yes. Upload a PDF, Word file, pasted text or a photo. Sign up free for starting credits; you see the credit cost before anything runs. The report is plain English and is not legal advice.

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