Governor Newsom signed a bill into law that prohibits employers from entering into noncompetes with California employees that are void under state law. Compete is not enforceable in the State of California.A noncompete agreement outlines the rights of employees to work once they terminate their employment with their current employer. The short answer is yes. But the long answer is complicated. How do I answer the NonCompete agreement question when I am applying for jobs that are in a different industry? California law famously bans employee noncompetition agreements, under a statute enacted in 1872. Discover how to get out of a noncompete agreement using legal loopholes. The FTC said noncompete clauses constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act. An employer may include a non-compete clause because they (or their out-of-state attorneys) are ignorant of California law.