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

A divided Ninth Circuit court ruled this week that California’s protections against contracts restraining employment were not explicitly limited to non-compete agreements.  Rather, the law can apply to any type of employment agreement, including settlement agreements.

In Donald Golden v. California Emergency Physicians Medical Group et al., case number 12-16514, the employer and employee entered into a proposed settlement agreement.  The no-employment provision in the settlement agreement states that the employee will not continue to be employed at any of the employer’s current facilities, or at any other facility with which the employer may contract in the future.  The employee appealed and sought to “un-do” the settlement agreement based on this clause.
Continue Reading California Court Rules On Protections Against Contracts: Why You Should Review Your Form Agreements Today