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The Clause About Working Elsewhere

Bus. & Prof. Code 16600 — a noncompete in employment is void, however narrow

In California, every contract that restrains anyone from engaging in a lawful profession, trade or business is void to that extent, except as the chapter provides. The section is to be read broadly to void any noncompete agreement or clause in an employment context, no matter how narrowly tailored, that does not fit an exception in the chapter.

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Signed elsewhere makes no difference. A contract void under the chapter is unenforceable regardless of where and when it was signed, and an employer may not attempt to enforce one even if the contract was signed and the employment was outside California.

Putting one in a contract is a violation. An employer may not enter into a contract with an employee or prospective employee that includes a void provision. Doing so, or trying to enforce one, is a civil violation, and the employee may sue for an injunction, actual damages, or both, and a prevailing employee recovers reasonable attorney's fees and costs.

The assumptionWhat the law actually does
The assumptionA narrow noncompete is still enforceableWhat the law actually doesVoid in employment, however narrowly tailored, outside the chapter's exceptions
The assumptionA clause signed in another state follows the worker hereWhat the law actually doesUnenforceable regardless of where and when it was signed

Non-solicitation and confidentiality agreements, trade secret law and the sale of a business follow rules of their own and are not all on this page. Whether a particular clause is enforceable is a question for a licensed California attorney.

Sources for this section (2)
  1. Bus. & Prof. Code 16600 — Contracts in restraint of trade void
  2. Bus. & Prof. Code 16600.5 — Void noncompete contracts: enforcement prohibited, private action

Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed California attorney.

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