Golden State Today

California Attorney General Rob Bonta has issued a consumer alert regarding unlawful restraints on employee mobility, such as no-poach agreements, non-compete agreements, and Training Reimbursement Agreement Provisions (TRAPS). These types of agreements can limit job mobility, suppress wages, and hinder career advancement in violation of California law.

"Employees deserve the freedom to seek better opportunities and better wages by finding new employment within their industry. Agreements that restrict employee mobility such as non-compete agreements, no-poach agreements, and TRAPs undermine this freedom," said Attorney General Bonta. "I urge all Californians to be aware of the unlawful nature of anticompetitive contracts and their potential impacts on career advancement and wage growth. If you believe you are being affected by this type of agreement, report it to my office at oag.ca.gov/report."

Non-compete agreements prevent employees from working for competitors or starting similar businesses within certain time frames or geographic areas. These have generally been void in California for decades. As of January 1, 2024, entering into or attempting to enforce such void agreements is illegal under California law.

No-poach agreements are arrangements between companies not to hire each other's employees. Such agreements may violate California law by limiting job opportunities and restricting wage increases.

TRAPs require workers to reimburse employers for training costs if they leave before a specified date. Similar employer-driven debt provisions can limit job opportunities and wage growth.

New legislation effective January 1, 2024, further strengthens worker protections. Senate Bill 699 makes it illegal for employers to enter into noncompete agreements with California employees. Assembly Bill 1076 declares existing noncompete agreements void unless they meet explicit statutory exceptions.

Attorney General Bonta encourages workers affected by these unlawful restrictions to report them to the authorities or seek legal advice through resources like LawHelpCA.org.

In recent actions supporting workers' rights, Attorney General Bonta has defended wages in lawsuits and launched investigations into labor practices in various industries.