October 2023

California’s 2023 legislative session ended on October 14, 2023, with a slew of new bills affecting employers. Governor Gavin Newsom signed more than 30 employment-related bills.

Highlights of the new laws affecting employers in California are summarized below. Most of the laws take effect January 1, 2024, unless otherwise indicated.

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California’s Governor signed Assembly Bill (AB) 1076 on October 13, 2023, which adds new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions already are void under Business & Professions Code §16600. 

AB 1076 codifies existing case law in Edwards v. Arthur Andersen LLP (2008) 44

In December 2022, the City of Berkeley passed the Fair Workweek Employment Standards Ordinance. The ordinance will become operative on January 12, 2024.

The Berkeley ordinance is similar to the City of Los Angeles’s Fair Work Week Ordinance which took effect April 1, 2023,and other local ordinances regarding how employees are scheduled

California’s Governor signed Senate Bill (SB) 54, which requires a venture capital company to report annually to the California Civil Rights Department (CRD) on its funding determinations related to companies primarily founded by diverse founding team members.

Under the law, a venture capital company is covered by the requirements if it meets either of