If you’ve been harmed by a non-compete agreement – or even have signed one – you’ve got a lottery ticket. Nothing I write speaks more loudly than Ca. Attorney General Bonta’s post!
Bonta office is seeking workers who have been victimized.
“Workers who have been wrongly presented with or have entered into a noncompete agreement should report it immediately to the Attorney General’s office at oag.ca.gov/report.”
Noncompete agreements are widespread,
affecting an estimated 20-25% of the nation’s labor force
OAKLAND – Cal. AG Rob Bonta issued an alert informing employers and workers that non-compete agreements are not enforceable in California.
Non-compete agreements generally require workers to refrain from accepting new job opportunities in a similar line of work OR establishing a competing business for a specified period and within a geographic area.
Although frequently found in high-paying, highly technical jobs, these provisions are also found in lower-paying, less technical jobs and can hurt labor market mobility and worker compensation.
For example, a 2019 study estimates 53% of non-compete workers are non-salaried, hourly-wage employees, with 14% earning less than $40k yearly.
A.G. Bonta urges individuals wrongfully presented with a noncompete agreement to know their rights. “Despite being prohibited in California, non-compete provisions are routinely included in employee contracts, including contracts for lower-wage workers.
This can tremendously deter workers from pursuing new and often better job opportunities,” AG said Bonta. California law prohibits employers, including those who operate out of state but employ California residents, from enforcing non-compete agreements.
Even when invalid, these agreements can discourage workers from seeking new opportunities, causing workers in various professions to mistakenly believe that they cannot pursue or accept a competitor’s offer of better pay or working conditions in fear of facing legal repercussions.
From software engineers to baristas, those in noncompete agreements may believe their only option is to continue working for their current employer.
These anti-competitive provisions also harm the economy by depriving legitimate businesses of the opportunity to hire workers who may otherwise be available or qualified.
Non-compete agreements also harm wages, entrepreneurship, market concentration in the labor force, and equality among the workforce.
Noncompete agreements are often buried in fine print and go unmentioned in discussions between workers and employers.
Even worse, they are sometimes added to the terms of employment after a worker has accepted a job or even after they have begun work.
A.G. Bonta enforces California’s laws to protect the welfare of California workers and maintain a level playing field for legitimate businesses operating in the state through the Worker Rights and Fair Labor Section.
Last month, he filed an amicus brief urging the National Labor Relations Board to strengthen protections for workers seeking to organize in a case before the Board.
That same month, he appealed the dismissal of a lawsuit challenging Facebook’s illegal, anticompetitive behavior.
In September 2021, he filed a lawsuit against American Airlines and JetBlue, challenging an anticompetitive joint venture between the companies known as the Northeast Alliance.
