As discussed in our previous article, the Federal Trade Commission’s (“FTC”) newly enacted Non-Compete Clause Rule (“Rule”) is set to go into effect on September 4, 2024, by its own terms. The Rule would virtually ban all non-compete agreements for nearly all workers of for-profit employers.
A new California law requires employers to notify all current and former employees if any signed employment agreement (e.g., offer letter, non-disclosure agreement, employment contract), contains an invalid post-employment covenant not to compete (a “non-compete provision”). Assembly Bill 1076, signed last month by Gov. Newsom, requires employers to give written notice to all affected current and former employees that the non-compete provision is void by February 14, 2024.