As part of a focused effort by the California Legislature to protect employees from unenforceable non-compete clauses and agreements and increase fair competition among employers in 2024, Assembly Bill 1076 enacted Business and Professions Code section 16600.1.

In addition to any other Valentine’s Day plans that employers may have, all employers that provided any agreement with an unlawful non-compete clause or otherwise executed an unlawful non-compete agreement with its employees who were employed after January 1, 2022 must provide written notice to each employee or former employee that such clause or agreement is void.  Each written notice must be individualized to the employee or former employee and delivered to the person’s last known address and email address.  Such individualization might include: (1) the date the agreement was signed; (2) the title of the agreement; and (3) the agreement or clause that is void.  Importantly, AB 1076 does not prevent employers from specifying any clause or provision that remains in full force and effect.  The deadline for sending this notice is February 14, 2024. 

Failure to send this notice while a non-compete provision remains in effect will constitute a violation of section 16600.1 and be deemed an act of unfair competition, which can give rise to actions for injunctive relief and restitution damages. 

With ever-evolving constraints on businesses in this state, it is as important as ever to review existing agreements and policies to ensure that they conform with AB 1076 and other new employment laws.

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