CA AB747

Modifies the definition of "ownership interest" in business sale non-compete agreements to require more than 10% ownership stake in partnerships, memberships, or corporate shares before non-compete restrictions can apply.

Prohibits employers from entering into, presenting, or enforcing contracts in restraint of trade that are void under California law, with violating employers liable for actual damages plus up to $5,000 per employee or prospective employee.

Allows employees and prospective employees to bring civil actions for injunctive relief, actual damages, and penalties, with prevailing parties entitled to recover reasonable costs and attorney's fees.

Requires the Attorney General and Labor Commissioner to receive and investigate complaints of violations related to void contracts in restraint of trade, with the Attorney General authorized to bring enforcement actions.

Amends Labor Code Section 925 to clarify that the exemption for venue/forum selection agreements applies only when an employee is individually represented by legal counsel not paid for or suggested by the employer, effective for contracts entered into or modified on or after January 1, 2025.