California has a strong public policy, codified in Section 16600 of the Business & Professions Code and repeatedly recognized by courts, that prohibits restrictions on employee mobility and competition, except in certain defined situations, as set forth in Sections 16601 and 16602 of the Business and Professions Code. Restrictions prohibiting competition that involves disclosure of trade secrets is also allowed.
for many workers, signing an employment contract with a confidentiality, non-disclosure, non-competition, or non-solicitation clause is a necessary part of accepting and keeping a job. What they don't anticipate, however, is that those provisions can be leveraged against them to restrict employees' rights to challenge unlawful practices and find other work, placing their livelihoods and future employment in jeopardy.
In apparent support of U.S. workers and economic realities, the Antitrust Division of the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) recently issued guidelines for human resources professionals regarding anti-competitive hiring practices.