In October 2023, California’s Governor signed Assembly Bill (AB) 1076 which added the 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.

Under AB 1076, employers must notify current employees and former employees (employed after January

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

On September 1, 2023, Governor Newsom signed Senate Bill (SB) 699, which buttresses current state law that voids contracts that restrain an employee from engaging in a lawful profession, trade, or business of any kind.  

California’s Business and Professions Code section 16600 states, “[E]very contract by which anyone is restrained from engaging in

Recently the U.S. Equal Employment Opportunity Commission (EEOC) released new guidance regarding discrimination against employees with caregiving responsibilities for family members. California similarly has a pending bill, Assembly Bill (AB) 2182, which seeks to add “family responsibilities” as a protected class under the Fair Employment and Housing Act (FEHA).

If passed, the bill

Governor Newsom signed Senate Bill 331 (SB 331), which further limits the use of non-disclosure agreements (NDAs) and settlement agreement terms when settling employment legal claims involving harassment, discrimination, or retaliation.

Before the passage of SB 331, California’s restriction was limited to sex-related claims.  Specifically, since 2019 when SB 820 went into effect, California law