SB 699: Non-compete Contracts
Freedom of employment is paramount to competitive business interests
By Chris Micheli, March 28, 2023 3:23 pm
Senate Bill 699 by Sen. Anna Caballero (D-Merced) would address the issue of non-compete clauses in California employment situations. SB 699 would add Business and Professions Code Sections 16600.5 and 16608. Section 1 of the bill would set forth six legislative findings and declarations, including that noncompete clauses in employment contracts are extremely common in the United States, and, over the past two decades, research on the harm of noncompete clauses and other contract clauses involving restraint of trade to pursue one’s profession has been accelerating.
In addition, the California courts have been clear that California’s public policy against restraint of trade law trumps other state laws when an employee seeks employment in California. Freedom of employment is paramount to competitive business interests.
Section 2 of the bill would add Business and Professions Code Section 16600.5 to specify that any contract that is void under California law is unenforceable regardless of where and when the contract was signed. Moreover, an employer would be prohibited from attempting to enforce a contract that is void under this law regardless of whether the contract was signed and the employment was maintained outside of California.
Section 3 of the bill would add Business and Professions Code Section 16608 to prohibit an employer from entering into a contract that presents an employee or prospective employee as a term of employment. In addition, an employer that enters an agreement that the employer knows or reasonably should know is prohibited by this law commits a civil violation, and the Attorney General may bring an action on behalf of the employee, or the employee may bring a private action, against the employer to enforce this law.
Finally, an employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this law. Also, a prevailing employee or prospective employee in any action based on a violation of this law is entitled to recover reasonable costs and attorney’s fees.
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2 thoughts on “SB 699: Non-compete Contracts”
First it was Assembly Bill 1076 by Democrat Assemblywoman Rebecca Bauer-Kahan which was introduced to prohibit noncompete agreements in California. Now there is Senate Bill 699 by Democrat Senator Anna Caballero which would address the issue of non-compete clauses in California employment situations. What lobby group is behind all of this non-compete legislation by Democrats? Why is there so much legislation by the Democrat cabal to weaken and destroy private employer and employee contractual relationships?
Who is Democrat Senator Anna Caballero? She’s another leftist Democrat who couldn’t make it as a lawyer so she went into Democrat politics first serving on the Salinas Planning Commission, installed on the Salinas City Council in 1991, installed as Salinas Mayor in 1998, she was installed in the 28th Assembly District from 2006 to 2010, former Gov. Jerry Brown appointed her to head the California State and Consumer Services Agency in 2011 to 2016, she was installed in the 30th Assembly District in 2018, and most recently she was installed in the 12th Senate District in 2018. Senator Anna Caballero is a typical member of the Democrat cabal who moves from one government position to another and she’s a burden on taxpayers?