California 2023-2024 Regular Session Status: Enacted 1 D cosponsors

AB 1076 — Contracts in restraint of trade: noncompete agreements.

Last action — Chaptered by Secretary of State - Chapter 828, Statutes of 2023.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 15, 2023. Enacted.

Signed by Governor Gavin Newsom (Democratic) on October 13, 2023.

Prognosis

Likely to advance 72% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 8 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law voids contractual provisions by which a person is restrained from engaging in a lawful profession, trade, or business of any kind, except as otherwise provided. Existing case law, as established in the case of Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, interprets this provision to void noncompete agreements in an employment context and noncompete clauses within employment contracts, even if that agreement is narrowly tailored, unless an exception applies. Existing law, the Unfair Competition Law (UCL) , makes various practices unlawful and makes a person who engages in unfair competition liable for a civil penalty, as specified. Existing law provides for enforcement of these provisions exclusively by the Attorney General or other specified local agency attorneys. This bill would codify existing case law by specifying that the statutory provision voiding noncompete contracts is to be broadly construed 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 specified exceptions. The bill would state that this provision is declaratory of existing law. The bill would make these provisions applicable to contracts where the person being restrained is not a party to the contract. This bill would also make it unlawful to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that does not satisfy specified exceptions. The bill would require employers to notify current and former employees in writing by February 14, 2024, that the noncompete clause or agreement is void, as specified. This bill would make a violation of these provisions an act of unfair competition pursuant to the UCL.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 828, Statutes of 2023.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3:30 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 80. Noes 0. Page 3445.).

  5. In Assembly. Concurrence in Senate amendments pending.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2687.).

  7. Ordered to special consent calendar.

  8. Read second time. Ordered to third reading.

  9. From committee: Do pass. (Ayes 7. Noes 0.) (September 1).

  10. In committee: Referred to APPR suspense file.

  11. Read second time and amended. Re-referred to Com. on APPR.

  12. From committee: Amend, and do pass as amended and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) (July 6).

  13. Referred to Com. on JUD.

  14. In Senate. Read first time. To Com. on RLS. for assignment.

  15. Read third time. Passed. Ordered to the Senate. (Ayes 80. Noes 0. Page 1892.)

  16. Read second time. Ordered to third reading.

  17. From committee: Do pass. (Ayes 15. Noes 0.) (May 18).

  18. In committee: Set, first hearing. Referred to APPR. suspense file.

  19. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 26). Re-referred to Com. on APPR.

  20. Re-referred to Com. on L. & E.

  21. From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.

  22. In committee: Set, first hearing. Hearing canceled at the request of author.

  23. Re-referred to Com. on L. & E.

  24. From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.

  25. Referred to Com. on L. & E.

  26. From printer. May be heard in committee March 18.

  27. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 1076 Bauer-Kahan Concurrence in Senate Amendments

Passed 80 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 47000
Republican 13000
Unaffiliated 20000
Total 80000
% of votes cast 100%0%0%0%
How each member voted (80)
Member Party Vote
Villapudua — Yea
Jones-Sawyer — Yea
Rendon — Yea
Friedman — Yea
Maienschein — Yea
Ting — Yea
Wood — Yea
Low — Yea
Holden — Yea
Mathis — Yea
Rodriguez — Yea
McCarty — Yea
Essayli — Yea
Waldron — Yea
Santiago — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Connolly, Damon Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Haney, Matt Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Soria, Esmeralda Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Yea
Chen, Phillip Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Dixon, Diane Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Hoover, Josh Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea
Sanchez, Kate Republican Yea
Ta, Tri Republican Yea
Wallis, Greg Republican Yea

Official roll call →

Special Consent AB1076 Bauer-Kahan By Durazo

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 11000
Democratic 21001
Republican 7000
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Roth — Yea
Atkins — Yea
Portantino — Yea
Newman — Yea
Min — Yea
Wilk — Yea
Eggman — Yea
Glazer — Yea
Dodd — Yea
Bradford — Yea
Skinner — Yea
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Yea
Blakespear, Catherine S. Democratic Yea
Caballero, Anna M. Democratic Not Voting
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Menjivar, Caroline Democratic Yea
Nguyen, Stephanie Democratic Yea
Padilla, Stephen C. Democratic Yea
Rubio, Susan Democratic Yea
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea
Seyarto, Kelly Republican Yea

Official roll call →

Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar

Passed 11 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 2000
Democratic 8000
Republican 1000
Total 11000
% of votes cast 100%0%0%0%
How each member voted (11)
Member Party Vote
Min — Yea
Wilk — Yea
Allen, Benjamin Democratic Yea
Ashby, Angelique V. Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Laird, John Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wiener, Scott D. Democratic Yea
Niello, Roger W. Republican Yea

Official roll call →

AB 1076 Bauer-Kahan Assembly Third Reading

Passed 80 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 47000
Republican 13000
Unaffiliated 20000
Total 80000
% of votes cast 100%0%0%0%
How each member voted (80)
Member Party Vote
Villapudua — Yea
Jones-Sawyer — Yea
Rendon — Yea
Friedman — Yea
Maienschein — Yea
Ting — Yea
Wood — Yea
Low — Yea
Holden — Yea
Mathis — Yea
Rodriguez — Yea
McCarty — Yea
Essayli — Yea
Waldron — Yea
Santiago — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Vince Fong — Yea
Wendy Carrillo — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Connolly, Damon Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Haney, Matt Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Soria, Esmeralda Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Yea
Chen, Phillip Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Dixon, Diane Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Hoover, Josh Republican Yea
Lackey, Tom Republican Yea
Patterson, Joe Republican Yea
Sanchez, Kate Republican Yea
Ta, Tri Republican Yea
Wallis, Greg Republican Yea

Official roll call →

Do pass.

Passed 15 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 9001
Republican 3000
Unaffiliated 3000
Total 15001
% of votes cast 94%0%0%6%
How each member voted (16)
Member Party Vote
Holden — Yea
Mathis — Yea
Wendy Carrillo — Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Hart, Gregg Democratic Yea
Lowenthal, Josh Democratic Yea
Ortega, Liz Democratic Yea
Papan, Diane Democratic Yea
Pellerin, Gail Democratic Yea
Rivas, Robert Democratic Not Voting
Weber Pierson, M.D., Akilah Democratic Yea
Dahle, Megan Republican Yea
Dixon, Diane Republican Yea
Sanchez, Kate Republican Yea

Official roll call →

Subjects

public-safety labor
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Frequently asked questions

What does AB 1076 do?
Existing law voids contractual provisions by which a person is restrained from engaging in a lawful profession, trade, or business of any kind, except as otherwise provided. Existing case law, as established in the case of Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, interprets this provision to void noncompete agreements in an employment context and noncompete clauses within employment contracts, even if that agreement is narrowly tailored, unless an exception applies. Existing law, the Unfair Competition Law (UCL) , makes various practices unlawful and makes a person who engages in unfair competition liable for a civil penalty, as specified. Existing law provides for enforcement of these provisions exclusively by the Attorney General or other specified local agency attorneys. This bill would codify existing case law by specifying that the statutory provision voiding noncompete contracts is to be broadly construed 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 specified exceptions. The bill would state that this provision is declaratory of existing law. The bill would make these provisions applicable to contracts where the person being restrained is not a party to the contract. This bill would also make it unlawful to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that does not satisfy specified exceptions. The bill would require employers to notify current and former employees in writing by February 14, 2024, that the noncompete clause or agreement is void, as specified. This bill would make a violation of these provisions an act of unfair competition pursuant to the UCL.
Who sponsors AB 1076?
AB 1076 is sponsored by Bauer-Kahan, Rebecca (Democratic).
What is the current status of AB 1076?
This bill has been enacted into law. Introduced February 15, 2023. Enacted.
Where can I track AB 1076?
Track AB 1076 free on One Click Politics — get push/email alerts when it moves.

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