HomeEmploymentNew Notices Required in CA Non-Compete Ban

New Notices Required in CA Non-Compete Ban


As if compiling all the present California employment notices wasn’t sufficient, a brand new regulation turning into efficient January 1, 2024 imposes a further discover to staff. AB 1076 piggybacks on SB 699, making it illegal to incorporate a noncompete clause in an employment contract, topic to statutory exceptions.

Nonetheless, it goes a step additional, requiring employers to inform (in writing) present and former staff who had been employed after January 1, 2022 that any noncompete clauses or “noncompete agreements” beforehand signed by these staff are void. This requirement seems to use to employment agreements, confidentiality agreements and separation agreements. The written discover have to be individualized to the worker or former worker and delivered to the particular person’s final recognized deal with and e-mail deal with. The deadline for employers to ship the discover is February 14, 2024.

“Noncompete settlement” is just not outlined within the statute. Nonetheless, AB 1076 refers to Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, which addressed a non-solicitation of consumers provision. Arguably, the discover requirement might additionally apply to a non-solicitation of worker provision.

We word that the penalty for failure to inform staff is encompassed as violation of unfair competitors beneath California’s Unfair Competitors Legislation (UCL), California Enterprise and Professions Code §§ 17200 et seq. Accordingly, employers who fail to satisfy the notification requirement could possibly be topic to injunctive aid or restitution, however not compensatory or different damages.

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