Non-compete clauses are designed to prohibit employees from engaging in competitive activities after leaving their current employer. However, California’s Business and Professions Code 16600 makes these clauses unlawful and champions workers’ freedom to move jobs effortlessly and without consequence. 

Despite their unenforceability, employers still include these clauses in contracts in policies thereby misleading employees about their post-employment options. It’s also important to note that  that California prohibits out-of-state employers from using “choice-of-law provisions” to enforce non-compete agreements under another state’s laws. This protection ensures that California workers are not bound by non-compete agreements even if they work for out-of-state companies or temporarily work in other states.