A new California law, Labor Code § 925 (Senate Bill No. 1241), effective January 1, 2017, will prohibit employers from requiring California-based workers to litigate their claims outside California or under other states’ laws. This law effectively closes a loophole used by employers seeking to avoid California’s prohibitions against restraints of trade. The law will apply to agreements entered into, modified, or extended beginning January 1, 2017.
Contractual Restraints on Trade Are Void Under California Law
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