Are non-competes enforceable in California?
The short answer
California law generally treats most employee non-compete agreements as void under Business & Professions Code §16600, and legislation effective in 2024 (§16600.5) extended this to contracts regardless of where they were signed — as reported in the statute. Offers still arrive with these clauses in them, and related restrictions (non-solicitation, confidentiality, IP assignment) vary widely in scope.
What Dang reviews here: Dang reviews the clause language in your offer — what the non-compete, arbitration, IP, and similar terms say and what to ask about them. It does not verify wage, hour, or leave compliance.
Jurisdiction focus: CA — rules differ in other states.
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What a non-compete clause usually does
A non-compete restricts where you can work after leaving — typically by industry, geography, and time period. In California, the statute generally voids most of these for employees, but offers often still contain them, alongside narrower cousins: non-solicitation of customers or coworkers, confidentiality terms, and invention-assignment clauses.
Those neighboring clauses are not the same thing as a non-compete, and their enforceability and scope are separate questions. The wording of each one is what matters.
Why people worry
The classic pressure is "no signature, no job" — being asked to accept career-limiting restrictions under time pressure. People also worry that signing a void clause still creates risk, or that they cannot tell which of several restrictive clauses actually binds them.
What to look for in your offer
- Any clause restricting post-employment work — and its stated industry, geography, and duration.
- Non-solicitation terms covering customers, clients, or coworkers.
- Confidentiality definitions broad enough to function like a work restriction.
- Invention/IP assignment scope — does it reach things you build on your own time?
- Choice-of-law and venue clauses pointing outside California.
Questions to ask before signing
- Ask the employer to clarify whether the non-compete is intended to apply to you in California.
- Ask the other party to confirm the scope of any non-solicitation or confidentiality clause in writing.
- Confirm what happens to the clause if you work remotely from another state.
- Consider having the offer reviewed before signing if the restrictions are broad or unclear.
Reading the actual document
The general rule tells you the baseline. Your offer tells you what you’re actually being asked to sign — and the wording is what binds. Read the specific clauses in your document before you sign.
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Common questions
Does it matter where the contract was signed?
Legislation effective in 2024 (Business & Professions Code §16600.5) reports that the prohibition applies regardless of where the contract was signed or where the employee worked previously. How it applies to a specific situation is worth confirming before relying on it.
Are non-solicitation clauses the same as non-competes?
No — they restrict different things, and their treatment differs. An offer can contain several distinct restrictive clauses; each one's wording and scope is worth reading separately.
Sources
- California Business & Professions Code §16600 (official statute text) · official source
- California Business & Professions Code §16600.5 (official statute text) · official source
- Sources last checked 2026-06-10. Laws and market practices change — confirm current rules before relying on them.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.