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
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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