Notice on Non-Compete Agreements in California

Hydronos Corporation Employee Rights Statement

Hydronos Corporation complies with California law, which makes nearly all non-compete agreements illegal and unenforceable.

• California Business & Professions Code §16600:
   “Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.”
  
   
• This means that employers in California cannot prevent employees from working for a competitor, starting their own business, or engaging in their chosen trade after leaving employment.
   

The only recognized exceptions under California law are:

• Sale of a Business: A seller may agree not to compete with the buyer in a defined geographic area.
   
• Dissolution of a Partnership or LLC: Partners or members may agree to certain restrictions when winding down a company.
   

Outside of these rare cases, non-compete agreements are not valid.

California courts have consistently rejected non-competes:

• Edwards v. Arthur Andersen LLP (2008): The California Supreme Court held that non-compete clauses in employment agreements are void.
   
• Golden v. California Emergency Physicians (2015): The Ninth Circuit confirmed that even settlement agreements restricting employment violate §16600.
   

Recent California laws have strengthened these protections:

• SB 699 (effective January 1, 2024): Makes it unlawful for any employer to enter into, attempt to enforce, or suggest a non-compete with employees or prospective employees.
   
• AB 1076 (effective January 1, 2024): Requires employers to notify current and certain former employees that any non-compete clauses they may have signed are void.
   

• Hydronos does not and will not use non-compete agreements as a condition of employment, partnership, or contracting.
   
• Any non-compete clause presented to an employee in California is automatically void and unenforceable.
   
• We fully respect the right of every team member to pursue future work, whether with a competitor, independently, or in a new industry.
   

If you are ever asked to sign a non-compete agreement in California — whether by Hydronos or any other employer — you should know:

• It is unenforceable under California law.
   
• You may have legal rights if an employer tries to restrict your future employment.
   
• Questions or concerns can be directed to a qualified employment attorney or the California Department of Industrial Relations.
   

📌 Hydronos Corporation stands for fairness, opportunity, and compliance with California labor law. We believe your skills, knowledge, and trade experience are yours to use — freely and without unlawful restrictions.