SB 699

  • October 11, 2023
  • Blog

On September 1, 2023, Senate Bill 699 was signed amending the California Business & Professions Code Section 16600. Under the California Business & Professions Code, noncompete agreements are generally unenforceable. Section 16600 says, “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void”. Under Senate Bill 699, any contract that is void under Section 16600 continues to be unenforceable, regardless of where the contract was signed or where the employee worked. This new amendment expands the restrictions on noncompete agreements and creates more opportunities for employees to challenge noncompete clauses. The goal behind this latest bill is to preserve California’s competitive business interests by “protecting the freedom of movement of persons whom California-based employers wish to employ to provide services in California, regardless of the person’s state of residence”. 

This newly signed bill is set to go into effect beginning January 1, 2024. Employers who violate SB 699 may be liable for civil violations as the new bill authorizes both current and former employees to bring suit for injunctive relief and/or damages. 

In addition to SB 699, Assembly Bill 1076 is under consideration which would reinforce the broad ban on restrictive contracts and require employers to notify current and former employees that any noncompete agreements they may have signed are void. These bills together expand California’s ban on noncompete agreements. 

employment law
  • November 22, 2023
  • Blog

Employment Law 2024 Updates

With 2023 coming to an end, there are many new employment laws taking effect in 2024. It is imperative for employers to familiarize themselves with these new laws to ensure their businesses are compliant in the new year. Below is a summary of some relevant laws that are going into...

  • October 27, 2023
  • Blog

Corporate Transparency Act (CTA)

In 2021, Congress passed the Corporate Transparency Act (CTA) on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide gains through shell companies or other ownership structures. The reporting rule...