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Because customers and clients are not the same at all?

• throwup238 3y ago
  The CA law that bans noncompetes actually says "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." [1] OpenAI's noncompete is unenforceable if you live in California. However, in eight days (1/1/2024) SB 699 [2] goes into effect, extending that protection to everyone outside the state too and AB 1076 [3] amends the section to read “shall be read broadly," broadening the application of the law even further. [1] https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=16600 https://leginfo.legislature.ca.gov/faces/codes_displaySectio.... [2] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB699 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm... [3] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB1076 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...
  • hiatus 3y ago
    > However, in eight days (1/1/2024) SB 699 [2] goes into effect, extending that protection to everyone outside the state too How can a state unilaterally extend its jurisdiction across state lines?
    • kortilla 3y ago
      It’s not, it’s applying it to company’s operating in California. The expansion is to all of their customers/clients. If the company leaves California then the state has no jurisdiction over their business.