California has added a requirement for businesses that previously held employees to now-unenforceable noncompete agreements.
California allows noncompetes only in connection with the sale of a business, sale of equity in a business or ending of a partnership, according to a Jan. 9 blog post by law firm Duane Morris.
Here is a breakdown of the change, according to the firm:
Under the new regulations, companies that previously enforced these restrictions must individually notify employees who were employed anytime after Jan. 1, 2022, and were held to these contracts, by Feb. 14.
If a business fails to send notice of this to employees by the deadline, it will be considered "an act of unfair competition," which protects competitors, consumers and other market participants against unfair business practices, according to Duane Morris.