Earlier editions: 2020-112018-11
DIVISION 7. GENERAL BUSINESS REGULATIONS 16000-18107›PART 2. PRESERVATION AND REGULATION OF COMPETITION 16600-17365›CHAPTER 1. Contracts in Restraint of Trade 16600-16608
§ 16600
California Business and Professions Code · 2026 edition · updated 2026-10-04 · California
(a) Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.
(b) (1) This section shall be read broadly, in accordance with Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, to void the application of any noncompete agreement in an employment context, or any noncompete clause in an employment contract, no matter how narrowly tailored, that does not satisfy an exception in this chapter.
(2) This subdivision does not constitute a change in, but is declaratory of, existing law.
(c) This section shall not be limited to contracts where the person being restrained from engaging in a lawful profession, trade, or business is a party to the contract.
(Amended by Stats. 2023, Ch. 828, Sec. 1. (AB 1076) Effective January 1, 2024.)
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