California Non-Compete Penalty Measure Dies Ahead of Deadline

The California legislature won’t consider legislation this year that would have toughened penalties for employers who include non-compete clauses in employment contracts.

The measure failed to advance ahead of a key deadline Wednesday.

The bill (A.B. 747) would have imposed penalties of up to $5,000 per employee for violation of California’s laws against non-compete clauses and would have narrowed an exemption by changing how such clauses can be applied to people owning an interest in a business.

The legislation was the latest effort by California lawmakers and worker advocates to discourage employers from having workers sign contracts they ...