Last October, California Governor Gavin Newsom signed AB 1076 into law and it became effective as of January 1, 2024. AB 1076 was the Legislature’s attempt to codify the California Supreme Court’s 2008 decision, Edwards v. Arthur Anderson LLP, which held that non-compete agreements in the employment context are unenforceable unless they fall within one of the three narrow statutory exceptions dealing primarily with the sale of business interests. AB 1076 makes clear that requiring an employee to enter into a non-compete is unlawful and can subject the employer to penalties of up to $2,500 per violation.Continue Reading Employers Beware: The Deadline to Comply with Notification Requirement of California’s New Non-Compete Law is Rapidly Approaching!
