California has frowned on employee noncompetition agreements for a long time, but some employers still use them or try to disguise them as non-solicitation agreements. If that is the case in your Company, you will need to provide your affected employees with a personalized notice explaining that the non-competition agreement or the offending clause in the employment agreement is void by Valentine’s Day—February 14, 2024.
Recently enacted Business and Professions Code 16600.1 requires employers to provide “written, individual communications” to all current employees, and any former employees who were employed after January 1, 2022, whose contracts have a noncompete clause, or who signed a noncompete agreement. The writing must explain that the noncompete is void. This applies only to employee noncompete agreements and not to non-compete agreements that are part of the sale of a business.
If you have any questions or need help drafting the individualized notices, please contact the attorneys at WorkWise Law.
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