California CodesBusiness and Professions Code - BPCDivision 7 — General Business RegulationsPart 2 — Preservation and Regulation of CompetitionChapter 1 — Contracts in Restraint of TradeSection 16600
(a) Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.
(b)(1) This section shall be read broadly, in accordance with Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, to void the application of any noncompete agreement in an employment context, or any noncompete clause in an employment contract, no matter how narrowly tailored, that does not satisfy an exception in this chapter.
(2) This subdivision does not constitute a change in, but is declaratory of, existing law.
(c) This section shall not be limited to contracts where the person being restrained from engaging in a lawful profession, trade, or business is a party to the contract.
Notes
Bars contracts restraining anyone from a lawful profession, trade, or business to the extent of the restraint, except for chapter exceptions, including employment noncompetes regardless of narrow tailoring. It requires broad construction consistent with the stated precedent, declares that construction existing law, and applies even when the restrained person is not a party to the contract.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 16600 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-7/part-2/chapter-1/section-16600