Attorney General Bonta Reminds Employers and Workers That Noncompete Agreements Are Not Enforceable Under California Law
California Attorney General Rob Bonta today issued an alert reminding employers and workers that noncompete agreements are not enforceable in California. Noncompete agreements generally require workers to refrain from accepting new employment opportunities in a similar line of work or establishing a competing business, usually for a specified period of time and within a geographic area. Although frequently found in high paying, highly technical jobs, these provisions are also found in lower-paying, less technical jobs and can have an adverse impact on labor market mobility and worker compensation. For example, a 2019 study estimates that 53% of noncompete workers are non-salaried, hourly wage employees, 14% of whom earn less than $40,000 a year. Attorney General Bonta reminds both employers and employees that noncompete agreements are prohibited in the state of California, and urges individuals who are wrongfully presented with a noncompete agreement to know their rights.