On September 25, 2016, Governor Brown approved a very short but powerful piece of legislation for California employees who work for employers who are based outside of California and wish to have another state’s laws govern the employment relationship. Senate Bill 1241 adds Section 925 to the California Labor Code and states expressly that after

California’s prohibition on covenants not to compete is well established.  The statute that reflects this public policy, Business and Professions Code §16600 generally permits such covenants only in narrowly prescribed circumstances.  Those exceptions are all identified by statute at Business and Professions Code §§16601, 16602 and 16602.5.  These exceptions permit covenants not to compete when