DID YOU KNOW? NON-COMPETES – California has recently revised the law regarding non-compete clauses. Non-competes: A contract that prevents an employee from working for a competitor or starting a competing business for a certain period after leaving their current employment. Non-compete clauses have been unlawful and unenforceable in California for many years with very few exceptions. What’s different: Effective January 1, 2024, employees are now allowed to sue their employer (or former employer) for requiring them to enter into or attempting to enforce non-competes. Also important: By February 14, 2024, employers must have notified all employees (past or present) employed since January 1, 2022 that any non-competes they signed are void. Failure to do so may result in civil action against the employer with penalties up to $2,500 plus reimbursement of attorneys’ fees and expenses. If any of your employees or former employees signed a non-compete, please contact us. Rhonda Kraeber |
This Bulletin is part of an ongoing series by Kraeber Law Office to provide helpful hints about developments in the law that could be relevant to your business.