What is a non-compete agreement?
A non-compete agreement is where the employer tries to restrict an employee from competing against them in the future. A lot of times they're used to intimidate employees. Generally in California, non-competes are illegal and not enforceable.
If you want to know if your non-compete is enforceable or not, contact an attorney. They'll be able to help you figure that out.
Why California treats non-competes differently
Most states enforce non-competes under some circumstances. California's public policy runs the other way. It favors an employee's right to work where they choose, so a broad agreement not to compete after you leave a job is generally void no matter how it's worded or what you agreed to sign.
The narrow exceptions mostly involve someone selling an ownership stake in a business, not ordinary employees. If you're a rank-and-file worker, a standard non-compete buried in an offer letter or employment agreement is unlikely to hold up in California, whatever it claims about other states' law.
What can still hold up
Even when the non-compete itself falls apart, related clauses often survive, confidentiality provisions protecting real trade secrets, and sometimes narrow non-solicitation terms. Don't assume every restriction in your agreement is toothless just because non-competes generally aren't enforced here; have an attorney look at the actual language before you rely on that assumption.
California voids non-competes in employment, and two 2024 statutes went further: including one is unlawful, employers owed affected employees a written notice, and an employee can sue and recover legal fees. The full answer is in our guide on whether a non-compete is enforceable in California.
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