US-CaliforniaCan my employer require a non-compete agreement in California?
No, your employer generally cannot require a non-compete agreement in California — such agreements are void and unenforceable under state law.
What the Law Says
California law strongly prohibits employers from restricting employees’ ability to work for competitors after leaving a job. This rule applies broadly — with only narrow, statutorily defined exceptions.
Under California Business and Professions Code § 16600, 'Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.' This means non-compete clauses that prevent former employees from working for competitors, starting similar businesses, or soliciting clients are unenforceable.
The law reflects California’s strong public policy favoring employee mobility and open competition. Even agreements that appear 'reasonable' in scope, duration, or geography are invalid — unlike in many other states.
Limited exceptions exist under §§ 16601, 16602, and 16602.5 — but these apply only to specific situations: (1) sale of a business or ownership interest; (2) dissolution of a partnership; or (3) dissolution of a limited liability company. None permit non-competes against ordinary employees.
Statutory TextExcept as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.
— Bus. & Prof. Code § 16600 — Contracts in restraint of trade
What Courts Have Said
California courts have consistently struck down employer-imposed non-competes — even those labeled as 'reasonable' or tied to severance pay.
The Court held that § 16600 voids *all* restraints on an employee’s ability to work, rejecting the 'narrow restraint' exception used in some lower courts. A non-compete signed as part of a separation agreement was unenforceable.
Confirmed that non-compete provisions in employment agreements — even those limited to one year and specific geographic areas — are void under § 16600 and cannot be 'blue-penciled' (partially enforced).
What to Do
Do not sign a non-compete agreement — it is unenforceable and may signal broader legal risks in your employment contract.
If already signed, know that it has no legal effect in California unless it falls within one of the narrow statutory exceptions (e.g., you sold your business).
If your employer threatens discipline or denies benefits for refusing to sign, consult an employment lawyer — this may constitute unlawful coercion.
Report suspected violations to the California Labor Commissioner or file a complaint with the Attorney General’s office if the practice appears widespread.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.