Attorney General Bonta Files Amicus Brief in Defense of Federal Prohibition on Non-Compete Agreements

OAKLAND – California Attorney General Rob Bonta, as part of a coalition of 17 attorneys general, filed an amicus brief in defense of the Federal Trade Commission’s (FTC) prohibition on the use of most non-compete agreements. Non-compete agreements are contractual agreements, typically signed at the behest of an employer, that prevent employees from working for a competitor or starting their own business within an industry. These agreements often constrain wage growth and limit job mobility, particularly among workers who are not in a position to negotiate. In April 2024, with support from Attorney General Bonta and a multistate coalition, the FTC finalized a nationwide rule prohibiting employers from entering into or enforcing these agreements in most cases. The rule was subsequently challenged by a real estate brokerage in Florida.  

“California has some of the strongest worker protections in the country, and we believe all workers have the right to choose the job and employer that is best for them,” said Attorney General Bonta. “The federal prohibition on the use of non-competes allows workers the opportunity to seek better wages and career opportunities by finding new employment within their industry. This rule will promote innovation, competition, and better working conditions – and we believe it’s on firm legal ground.”

Although California has prohibited the use of non-compete agreements by employers since the 1800s, these agreements have proliferated at a national level. Studies show that an estimated 18% of American workers are bound by non-compete agreements, and 38% have agreed to one in the past, usually because an employer insisted on them. In today’s amicus brief, Attorney General Bonta and a multistate coalition argue that the rule will provide a uniform and predictable national floor of protections that will benefit workers; foster greater innovation, entrepreneurship, and competition in critical industries, including the healthcare industry; and provide important consistency for workers and employers operating in multi-state labor markets.  

Attorney General Bonta is dedicated to upholding workers' rights and combating unfair labor practices. This year, Attorney General Bonta issued a consumer alert reminding California workers of new and existing worker protections; defended wages and overtime owed in the West Coast Drywall Lawsuit; and secured a settlement with Amalfi Stone & Masonry Company, Inc., resolving allegations of unfair competition and payroll tax, and labor violations. In 2023, Attorney General Bonta took action to protect workers by launching a historic investigation into gender discrimination in the National Football League, joining 17 attorneys general in supporting the Federal Trade Commission’s proposed rule limiting non-compete agreements, launching a legal fight for in-home-healthcare workers, and fighting for the rights of transportation workers and immigrant children.

Attorney General Bonta joins the attorneys general of New Jersey, the District of Columbia, Colorado, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, New York, Oregon, Pennsylvania, Vermont, and Washington in filing the brief.

A copy of the brief can be found here.