California’s legislature covered a wide array of labor and employment law topics this legislative session. The laws discussed below were signed into law by Governor Newsom and will become effective on January 1, 2024 unless otherwise noted. This Insight includes highlights of new laws affecting employers and is not intended to cover every new state and local law that was enacted this session.
Employers should begin reviewing these requirements to help ensure compliance with these new laws. Time to update those Employee Handbooks and train the management team!
New Employment Laws Generally Applicable to All California Employers
Non-Competes and Non-Solicitation Agreements: A Sea Change
Arguably some of the most impactful legislation this session are the two bills pertaining to California’s non-compete law. Two new bills expanded the scope and consequences of the state’s policies against restrictive covenants. Governor Newsom signed Senate Bill 699 into law on September 1, 2023, and Assembly Bill 1076 into law on October 13, 2023. Both are designed to strengthen the protections in California Business and Professions Code Section 16600, which provides that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” SB 699 creates Business and Professions Code Section 16600.5, which provides that any contract that is void under Section 16600 is unenforceable “regardless of where and when the...
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