New and immediate action items for 2024

Notice of void non competition clauses. As you know, most noncompete agreements in California are unlawful and unenforceable. Nonetheless, some employers have used a tactic of maintaining unenforceable noncompete agreements with their employees, figuring the employees might not know it’s unenforceable and might voluntarily comply with it. That strategy can be expensive starting February 14, 2024.

A new amendment to the California statute prohibiting noncompete clauses applies to the current and former employees who were subjects to a noncompete clause at any time since the beginning of 2022. They must be notified by February 14 that the noncompete clause or noncompete agreement is void and unenforceable. The form of the notice must be a “written individualized communication to the employee or former employee, delivered to the last known address and the email address of the employee or former employee.” Failing to do so will subject the employer to penalties under the unfair competition law of up to $2,500 dollars per employee.

It’s important for you to confirm from the file of each employee who worked for you since January 1, 2022, that they have no unlawful noncompetition clause or agreement. If such an agreement exists for any employee, the notice required by the new law must be sent by February 14, 2024.

Magic number for paid sick leave moves from 24 to 40. In 2023, employers had to maintain a paid sick leave formula that provided employees with 24 hours or more of sick leave. Generally speaking, an employer’s policy could cap sick leave at 48 hours.