Workforce
What Caregiver Retention Strategies Actually Work on a Small Budget?
Give caregivers the hours you promised, keep clients close, pay accurately and recognize good work. Twelve low-cost ideas and how to measure them.
Can a home care agency make caregivers sign a non-compete in California?
Last verified October 17, 2026 · All California resources
Banned. California voids non-competes for employees, with narrow exceptions such as the sale of a business. It is unlawful to include one in an employment contract or to try to enforce one, even if it was signed outside California. This applies to caregivers at any pay level.
| Status | Banned |
|---|---|
| Client non-solicitation | Section 16600 must be read broadly under Edwards v. Arthur Andersen LLP to void any non-compete in employment, however narrowly tailored; California courts apply this to customer non-solicitation clauses as well. |
| Notice requirements | Employers had to notify current and former employees (employed after January 1, 2022) by February 14, 2024 that any unlawful non-compete clause is void. |
| Statute | Cal. Bus. & Prof. Code §§ 16600, 16600.1, 16600.5 |
| Latest change | 2024-01-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
Whether a client no-hire clause in a service agreement is enforceable in California is not settled by statute; confirm with counsel.
General information, not legal advice.
More for California
Non-compete rules by state: other states
Related guides
Operations
What Should a Home Care Client Service Agreement Include?
Services, rates, minimums, cancellations, billing, overtime and termination, with a fill-in template and the state disclosure rules that shape it.
These free tools are made by the team behind Caregiver Scheduling, caregiver scheduling software for home care agencies.
Simple pricing
From $199 /month
Up to 10 caregivers on Starter, 50 on Growth.
More than 50 caregivers? We'll put together a custom Scale plan for your agency.