California Non-Disclosure Agreement PDF
California at a glance: Non-Compete NDAs: Generally void under Cal. Bus. & Prof. Code § 16600 · Trade Secret Protection: California Uniform Trade Secrets Act (CUTSA) · Employee NDAs: Enforceable for true trade secrets only
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Non-Disclosure Agreements in California
California has some of the most employee-friendly NDA laws in the country. Under Cal. Bus. & Prof. Code § 16600, any contract that restrains a person from engaging in a lawful profession, trade, or business is void — with very narrow exceptions. This means that NDAs cannot prevent employees from working for competitors after employment ends.
California does protect true trade secrets under the California Uniform Trade Secrets Act (CUTSA), but employers cannot use NDAs to prevent employees from using general skills and knowledge gained during employment.
California Non-Disclosure Agreement — Quick Reference
| Requirement | California Rule |
|---|---|
| Non-Compete NDAs | Generally void under Cal. Bus. & Prof. Code § 16600 |
| Trade Secret Protection | California Uniform Trade Secrets Act (CUTSA) |
| Employee NDAs | Enforceable for true trade secrets only |
| Governing Statute | Cal. Civ. Code § 3426 et seq. |
| Sexual Harassment NDAs | Restricted under SB 331 (2022) |
California Legal Requirements
- NDAs cannot prohibit employees from working for competitors after leaving — only true trade secrets may be protected.
- NDAs cannot prevent employees from discussing working conditions, wages, or potential legal violations.
- SB 331 prohibits NDAs that prevent disclosure of sexual harassment, assault, or discrimination in settlement agreements.
- Trade secrets must meet the CUTSA definition: information with independent economic value kept reasonably secret.
California Governing Laws
Read the full text of these laws at Cornell Law School's California legal resources or your state legislature's official website.