Protection of employees; covenants not to compete, discharged employees.

Protection of employees; covenants not to compete; discharged employees. Provides that no covenant not to compete, as such term is defined in existing law, between an employer and an employee is enforceable if such employer discharges such employee from employment without providing severance benefits or other monetary payment to such employee that is disclosed upon execution of the covenant not to compete, unless the employee is discharged for cause. This bill incorporates SB 569.

Source: OpenStates · fetched April 13, 2026

• W-2 worker (non-union)directModerate impactHigh certainty

  Covenants not to compete are unenforceable if the employee is discharged without severance benefits or other monetary payment disclosed upon execution of the covenant, unless the employee is discharged for cause.

  “Provides that no covenant not to compete, as such term is defined in existing law, between an employer and an employee is enforceable if such employer discharges such employee from employment without providing severance benefits or other monetary payment to such employee that is disclosed upon execution of the covenant not to compete, unless the employee is discharged for cause.”· Protection of employees; covenants not to compete; discharged employees.