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Summary of differences between federal and state regulations
California code generally prohibits non-compete agreements, although other restrictive covenants (such as those protecting trade secrets) are permissible. An exception to non-compete agreements is when an owner of a business sells the business and the goodwill associated with that business to a new owner.
California Business & Professions Code §16600 et. seq.
Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.