With a few exceptions set out in the law, Section 16600 of the California Business and Professions Code makes void “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind.” The rule dates from 1872. Since 2024 the text adds that noncompete clauses in employment are void “no matter how narrowly tailored,” unless an exception applies.
In practice, an employee in California can leave for a competitor. The former employer cannot use a noncompete clause to stop the move. One California employment law firm writes that the rule has enabled tech workers “to job hop.” It links the rule to the start-up culture of Silicon Valley.