Answer FileBusiness Law

Are non-compete agreements enforceable in California?

The answer, cited

Essentially never against employees. Business and Professions Code section 16600 voids contracts restraining anyone from a lawful profession, trade, or business, applied strictly in Edwards v. Arthur Andersen (2008) 44 Cal.4th 937. Since 2024, section 16600.5 makes void non-competes unenforceable regardless of where signed; narrow exceptions cover selling a business's goodwill and dissolving partnerships.

Against employees, essentially never. Business and Professions Code section 16600 declares void every contract that restrains anyone from engaging in a lawful profession, trade, or business, a rule California courts apply strictly, rejecting the "reasonableness" balancing used elsewhere (Edwards v. Arthur Andersen (2008) 44 Cal.4th 937). Legislation effective 2024 sharpened the policy: section 16600.5 makes void non-competes unenforceable in California regardless of where or when they were signed, and section 16600.1 required employers to notify affected workers that existing non-competes are void; violations expose employers to damages and attorney fees in employee suits. The statute has narrow exceptions tied to ownership, not employment: a seller of a business's goodwill (section 16601), a dissolving partnership (section 16602), or a dissociating LLC member (section 16602.5) may agree not to compete. Employers protect legitimate interests instead through trade-secret law (Civil Code section 3426 et seq.) and confidentiality agreements.

Authority: Cal. Bus. & Prof. Code § 16600

Source: Cal. Bus. & Prof. Code § 16600 · Checked: · Maintained by the California Attorney Registry from official State Bar of California records. Legal information, not legal advice.

More from this answer file

Business Law attorneys on the registry

Husnu Ada

Business Law · Ankara 06400 · Foreign County

Bar #363342 · Admitted 2025

Identity verified · View the record →

Robert D. Bedinger

Business Law · Upland · San Bernardino County

Bar #249040 · Admitted 2007

Taking new clients (attorney stated)

Identity verified · View the record →

Nicholas J. Brooks

Business Law · San Diego · San Diego County

Bar #349771 · Admitted 2023

Speaks Spanish, Portuguese · Taking new clients (attorney stated)

Identity verified · View the record →

Explore business law attorneys

Browse attorneys →

Have a business law matter? Submit your case for review.

Open a free case file, choose how attorneys may contact you, and review any terms they send. You decide whom to contact and whether to proceed.

In the last 30 days attorneys have read 11 filed matters on the registry.

Submit your case for review

Legal information, not legal advice

If cost is the concern

Court self-help, legal-aid organizations and attorney-stated fee options, with source links. No account or case submission is needed to use them.

Free and low-cost help in California

Read the record. Then decide.

Describe your matter once, review the verified records, and place the call; the choice is always yours.

Find Your Counsel

279,000+ attorney records · 58 counties · Official State Bar records