Bad Covenants, Big Exposure: California’s New Remedies for Unlawful Employment Restrictions

Description

• In 2023, the California legislature passed and Governor Newsom signed into law significant laws not only prohibiting employers from including unlawful post-employment restrictive covenants (non-competes, non-solicitation of customers and employees) in employment contracts, but also affirmatively requiring them to notify both current and former employees that they are void and authorizing claims for unfair competition, i.e., the 2024 “Valentine’s Day” notice requirement.
• The panel will discuss the effect of these recent developments, enacted as Cal. Bus. & Prof. Code §§ 16600, 16600.1 and 16600.5.
• The panel will also discuss a new law, AB 692, codified as new Bus. & Prof. Code § 16608 and new Cal. Labor Code § 9260, effective January 1, 2026, which bans most “stay or pay” contracts, such as retention and sign-on bonuses.
• Recent notable restrictive covenants and trade secrets litigation developments.

Speakers:

Tyler Paetkau, Paetkau Law Group PC

Adam Juratovac, Juratovac Law

Olga Savage, Paetkau Law Group PC

MCLE:

1.0 Hours General Substantive Credit