2024 CA Employment Law Updates
Some notable employment law updates for 2024:
Non-Compete Agreements Void & Unenforceable
CA law already deems non-compete agreements void and unlawful. For 2024, CA law additionally prohibits employers from entering or enforcing non-compete agreements regardless of where and when the agreements were signed. For example, non-compete agreements signed in states where the agreements are legal are enforceable. However, for 2024, CA prohibits employers from enforcing such non-compete agreements. Employers must give written notice to current or former employees who have signed a non-compete agreement that the agreement is voided. This notice must be given by February 14, 2024.
Pay Transparency Clarification
CA already requires employers with 15 or more employees to include pay scale information in all job postings. For 2024, the Labor Commission clarified that only one employee needs to be in CA for this law to apply whether in person or remotely. Further, external links to pay scale information are non-compliant; the pay scale information must be in the job posting itself.
Arbitration Agreements Still Enforceable
Enforceability of employment arbitration agreements survived a legal challenge at the Ninth Circuit. Employers may still require signing of arbitration agreements as a condition of employment.
Confidentiality Clauses Must Be Narrowly Tailored
Confidentiality and non-disparagement clauses in severance agreements cannot be broadly drafted. Employers need to carefully and narrowly draft confidentiality and non-disparagement clauses to avoid infringing on employees’ rights to discuss terms and conditions of employment to improve those terms and conditions.
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