NonCompete Clarity: California Employers Must Provide Notice of NonCompetes to Employees By February 14, 2024. While California generally disfavors non-compete agreements, there are exceptions to the general rule under certain circumstances.Compete contract is unusual for an internship situation. Speculation: the company has a standard employment package that HR prepares for every new hire. SB 699 expands the restrictions on noncompete agreements to contracts entered outside of California. SB 699 makes any noncompete agreementregardless of where it was signedunenforceable in California. Explore the interactive map below to see where noncompetes are allowed, where they are banned and any specific thresholds that must be met to be legally valid. The Federal Trade Commission (FTC) issued a new rule on April 23, 2024, banning new noncompete agreements in all employment contexts. As such, the law prohibits employers from entering into noncompete agreements that are void under California law. Essentially, noncompete clauses limit an employee's opportunity to excel in whatever skill or trade they're familiar with.