Business and Professions Code section 16600

Mentioned in

How To Know if a Non-Compete Agreement Is Reasonable

LawDepot, October 17, 2023

"A Non-Compete Agreement restricts an employee from entering into competition with an employer after their employment period ends. Some Non-Compete Agreements can be unreasonable and limit your future job prospects."
 
Bibliographic info

(a)

Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.

(b)

(1)This section shall be read broadly, in accordance with Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, to void the application of any noncompete agreement in an employment context, or any noncompete clause in an employment contract, no matter how narrowly tailored, that does not satisfy an exception in this chapter.

(2)

This subdivision does not constitute a change in, but is declaratory of, existing law.

(c)

This section shall not be limited to contracts where the person being restrained from engaging in a lawful profession, trade, or business is a party to the contract.

Source: Section 16600, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=BPC§ionNum=16600.­ (updated Jan. 1, 2024; accessed Jul. 21, 2025).

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Verified:
Jul. 21, 2025

§ 16600's source at ca​.gov