Generally, no.

California Business & Professions Code ยง 16600 renders most non-compete agreements void and unenforceable. Employers cannot restrict a former employee from working for a competitor or starting a competing business in most circumstances.

Limited statutory exceptions apply in connection with:

  • The sale of a business,
  • Dissolution of a partnership,
  • Sale of ownership interests in certain contexts.

However, these exceptions are narrow and fact-specific.

While non-compete agreements are largely prohibited, employers may enforce:

  • Confidentiality agreements
  • Trade secret protections
  • Non-solicitation provisions in limited contexts (subject to ongoing legal developments)

Attempting to enforce an unlawful non-compete may itself expose an employer to liability. Employers operating in California should ensure all restrictive covenants are carefully reviewed for compliance.