3 ms·
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 kin
by 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§ionNum=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 agoIt’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.