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Labor/Employment

Apr. 7, 2026

Agreements chilling employee mobility continue to face scrutiny

California law now bars noncompetes and "stay or pay" clauses that restrict employee mobility, reinforcing its strong public policy favoring open competition.

Melanie L. Ronen

Partner and Chair of the firm's employment practice
Stradley Ronon Stevens & Young, LLP

Phone: (562) 366-1650

Email: mronen@stradley.com

University of San Diego SOL; San Diego CA

See more...

Agreements chilling employee mobility continue to face scrutiny
Shutterstock

California's long-standing public policy favors open competition and freedom of employment. California Business & Professions Code Section 16600 provides that subject to certain narrow exceptions, "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." It is well established that the foregoing language generally prohibits employers' use o...

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