California physician non-compete law
Physician non-competes are generally not enforceable in California.
If your contract is governed by California law, a physician non-compete is generally void — the state does not let an employer restrict where you practice after you leave. The clause may still appear in your contract; that alone does not make it enforceable. Confirm the restriction is tied to employment (not the sale of a practice or an ownership stake), and don't let an unenforceable clause talk you out of a move it cannot actually block.
- Posture
- Void — total ban (employment)
- Last reviewed
- 2026-06-10
- Radius that tends to stand
- —
- Term that tends to stand
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Governing law: Cal. Bus. & Prof. Code § 16600 (with §§ 16600.1, 16600.5; sale/partnership carve-outs at §§ 16601, 16602; physician PE/MSO reinforcement at SB 351 / Health & Safety Code, eff. 1/1/2026)
These are the general rules for California. Your contract's exact radius, term, and buyout decide how it actually lands. See how your own clause compares — free.
Check your contract — free →A case that shaped this
Edwards v. Arthur Andersen LLP (2008, Cal. Supreme Court (44 Cal.4th 937)) — Rejected any judicial 'narrow restraint' exception to § 16600; employment non-competes are void unless a statutory exception applies — now codified by AB 1076's § 16600(b).
The detailed picture
California voids virtually all employment non-competes under Bus. & Prof. Code § 16600(a) ("every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void"), and physician employment covenants are squarely within the ban — there is NO physician-favorable carve-out. AB 1076 (eff. 1/1/2024) added § 16600(b) (mandating broad construction per Edwards, voiding employment non-competes however narrowly drawn) and § 16600(c) (the restrained person need not be a party), and made it unlawful to include or require a non-compete plus required individualized void notices by Feb 14, 2024 (UCL penalties up to $2,500/violation). SB 699 added § 16600.5, voiding such contracts regardless of where/when signed and creating a private right of action (damages, injunctive relief, attorneys' fees). NEW: SB 351 (signed 10/6/2025, eff. 1/1/2026) separately renders void/unenforceable any non-compete or non-disparagement clause in physician/dentist practice-management or asset-sale arrangements involving private-equity groups or hedge funds, and empowers the AG to seek injunctive relief and fees. The only exceptions remain non-employment ones: sale of business goodwill/ownership interest (§ 16601) and partnership dissolution (§ 16602) — so a non-compete can attach to a physician only as a true seller of equity/goodwill, not as an employee.
Common questions
Are physician non-competes enforceable in California?
Physician non-competes are generally not enforceable in California. Governing law: Cal. Bus. & Prof. Code § 16600 (with §§ 16600.1, 16600.5; sale/partnership carve-outs at §§ 16601, 16602; physician PE/MSO reinforcement at SB 351 / Health & Safety Code, eff. 1/1/2026).
My California contract still has a non-compete — does that matter?
A clause can appear in a contract without being enforceable. Under California law a physician employment non-compete is generally void, so confirm the restriction is not tied to a practice sale or ownership interest, and check your own contract's exact wording.
Other states
General legal information, not legal advice. Non-compete enforceability turns on the exact wording of your contract and your circumstances; this page describes the state's general posture as last reviewed 2026-06-10.