Governor Newsom signed a bill into law that prohibits employers from entering into noncompetes with California employees that are void under state law. As a general rule, non-compete agreements are not permitted under California law.Non-compete clauses in California are not enforceable. This regulation invalidates almost all noncompete agreements in the state of California. There are three main exceptions to this general rule. California Lawyers Help Employees Evaluate Noncompete Agreements. San Diego attorneys clarify rights and restrictions when a job ends. It is unlawful for California employers to fire employees who refuse to sign non-compete agreements. An employer may include a non-compete clause because they (or their out-of-state attorneys) are ignorant of California law. Pursuant to this rule, it will now be unlawful for employers to enter noncompete agreements with workers on or after the rule's effective date.