Here’s a straightforward summary to help you understand the implications of Senate Bill (SB) 699 and Assembly Bill (AB) 1076:
Prohibition of Noncompete Agreements (SB 699):
Employers are prohibited from entering into, or enforcing, noncompete agreements with employees.
All noncompete agreements are declared void in California, irrespective of where the employee was working at the time the agreement was initiated or the location where it was signed.
Notification Requirements (AB 1076):
Employers are now required to provide written notification to current and certain former employees (those employed after January 1, 2022) by February 14, 2024.
This notification must inform them that any noncompete agreements they entered into are no longer valid and enforceable under California law.
These developments mark an important shift ensuring greater mobility and freedom for employees in their professional choices. It is crucial for your business to comply with these legal updates to avoid any legal complications.
If you have any noncompete agreements in place or questions about these legislative changes, it's imperative to take immediate action. Please feel free to contact us for guidance on next steps or for any additional information you might need.