SB1218: L&E; covenants not to compete prohibited, low-wage employees, exceptions, civil penalty.

Legislative Summary

Labor and employment; covenants not to compete prohibited; exceptions; civil penalty. Provides that, for the purposes of the prohibition in existing law against an employer entering into, enforcing, or threatening to enforce a covenant not to compete with any low-wage employee, "low-wage employee" includes an employee who, regardless of average weekly earnings, is entitled to overtime compensation under federal law for any hours worked in excess of 40 hours in any one workweek. Any employer that violates the bill's provisions is subject to a civil penalty in existing law of $10,000 for each violation.