6 states have banned non-compete agreements entirely: California, District of Columbia, Hawaii, Minnesota, North Dakota, Oklahoma. The remaining 45 states enforce them, but most impose restrictions on duration (typically 1–2 years), geographic scope, and — increasingly — employee salary thresholds. The FTC attempted a national ban in April 2024; federal courts blocked it before its effective date. As of 2026, state law governs.
Data source: LegalStack 50-State Legal Data Layer, verified from state statutes. Last updated: 2026-04-01. View raw data (JSON)
In these jurisdictions, non-compete agreements are void and unenforceable by statute. Employers may not require or enforce them against employees (narrow exceptions may apply for sale of business).
| State | Status | Key Restrictions |
|---|---|---|
| Alabama AL | Enforceable | Must be reasonable in time (2 years max), geographic scope, and subject matter. Covenants entered after Jan 1, 2016 governed by Ala. Code § 8-1-190. |
| Alaska AK | Enforceable | Ancillary to a valid contract; must be reasonable in time and scope. Courts scrutinize carefully. No bright-line durational limit. |
| Arizona AZ | Enforceable | Restrictive covenants are disfavored but enforceable if reasonable. A.R.S. § 23-1501. Duration typically limited to 1-2 years. Geographic scope must match busin... |
| Arkansas AR | Enforceable | A.C.A. § 4-75-101. Must be in writing, ancillary to a valid contract. Duration max 2 years, geographic scope limited to area where employee worked. |
| California CA | BANNED | Non-competes are VOID and UNENFORCEABLE under Cal. Bus. & Prof. Code § 16600 (as amended Jan 1, 2024). Employers cannot require or enforce them. Very narrow exc... |
| Colorado CO | Enforceable | HB 22-1317 (effective Aug 10, 2022): Non-competes valid only for workers earning $123,750/year (2024 threshold, adjusts annually). Duration max 12 months. Cust... |
| Connecticut CT | Enforceable | Must be reasonable in duration, geographic scope, and subject matter. Connecticut Noncompetition Agreement Act (2016) restricts noncompetes in broadcast industr... |
| Delaware DE | Enforceable | Courts apply reasonableness standard. Delaware has traditionally enforced covenants if reasonable in time, geography, and scope. New non-compete restrictions ef... |
| District of Columbia DC | BANNED | Ban on Non-Compete Agreements Amendment Act of 2020 (effective Oct 2022): Non-competes VOID for employees earning ≤$150,000/year (≤$250,000 for medical speciali... |
| Florida FL | Enforceable | Fla. Stat. § 542.335: Non-competes are enforceable if in writing, supported by consideration, and covering a protectable legitimate business interest. Presumpti... |
| Georgia GA | Enforceable | Georgia Restrictive Covenants Act (O.C.G.A. § 13-8-51 et seq., effective 2011). Requires legitimate business interest. Duration max 2 years; geographic scope li... |
| Hawaii HI | BANNED | HB 2204 (effective Jul 1, 2022): Non-competes and non-solicitation agreements are VOID and UNENFORCEABLE in Hawaii. Only exception: sale of a business. |
| Idaho ID | Enforceable | Enforceable if reasonable. Idaho Code § 44-2701 (2008): Creates presumption of reasonableness for 18-month agreements following involuntary termination — unusua... |
| Illinois IL | Enforceable | Freedom to Work Act (2022): Non-competes prohibited for workers earning ≤$75,000/year. Non-solicitation agreements prohibited for workers ≤$45,000/year. Agreeme... |
| Indiana IN | Enforceable | Common law reasonableness standard. Must be ancillary to an employment contract and have legitimate business interest. Courts will not blue-pencil — all-or-noth... |
| Iowa IA | Enforceable | Common law reasonableness. Iowa courts apply strict scrutiny to non-competes involving at-will employees. Must protect a legitimate business interest. Geographi... |
| Kansas KS | Enforceable | Reasonableness standard. Duration typically max 2 years. Must protect a protectable business interest. Kansas courts may partially enforce over-broad agreements... |
| Kentucky KY | Enforceable | Reasonableness test. KRS § 371.010(5) governs restraint of trade. Must be ancillary to employment. Duration typically 1-2 years max. Blue-penciling allowed. |
| Louisiana LA | Enforceable | La. R.S. § 23:921: Must be in writing. Duration max 2 years. Geographic scope limited to parishes (counties) where employer does business. Strictly construed — ... |
| Maine ME | Enforceable | Must be in writing and provided to employee 3 days before signing (or job offer). Duration max 1 year after termination. Cannot apply to employees earning ≤400%... |
| Maryland MD | Enforceable | H.B. 1260 (2019): Non-competes are VOID and UNENFORCEABLE for employees earning ≤$15/hour or $31,200/year. Must be in writing, supported by consideration. Durat... |
| Massachusetts MA | Enforceable | Massachusetts Noncompetition Agreement Act (2018): Must be in writing, signed. Duration max 1 year (18 months for breach). Must be provided at least 10 days bef... |
| Michigan MI | Enforceable | Antitrust Reform Act, MCL § 445.774a: Reasonable in scope, duration, and geographic area. Courts may blue-pencil. Duration typically max 1-3 years. |
| Minnesota MN | BANNED | Minnesota HF 1874 (effective July 1, 2023): Non-compete agreements entered on or after July 1, 2023 are VOID and UNENFORCEABLE. Applies to both employment and i... |
| Mississippi MS | Enforceable | Mississippi Code § 15-3-1: Common law reasonableness standard. Must protect legitimate business interest. Duration typically max 2 years. Geographic scope tied ... |
| Missouri MO | Enforceable | Missouri follows the Solari Industries test: (1) not greater than required for employer's protection, (2) not impose undue hardship on employee, (3) not injurio... |
| Montana MT | Enforceable | Montana Code § 28-2-703 to 28-2-705: Enforceable only if: (1) restriction on type of employment; (2) based on valuable consideration; (3) protectable business i... |
| Nebraska NE | Enforceable | Common law reasonableness. Must be reasonable in time, territory, and scope. Nebraska courts have enforced agreements with 2-year duration limits. Blue-pencilin... |
| Nevada NV | Enforceable | NRS § 613.195 (2017): Must be in writing, supported by valuable consideration. Duration ≤2 years max. Geographic restriction. Non-competes for hourly employees ... |
| New Hampshire NH | Enforceable | RSA § 275:70 (2012): Must be provided to employee at least 7 days before start date. Must reflect legitimate business interest. Courts apply strict scrutiny. No... |
| New Jersey NJ | Enforceable | Common law reasonableness (Solari/Whitmyer standard). Must protect legitimate business interest, not impose undue hardship. Duration typically max 2 years. NJ A... |
| New Mexico NM | Enforceable | Common law reasonableness standard. Must protect legitimate business interest. Duration and geographic scope must be reasonable. Courts will void overly broad a... |
| New York NY | Enforceable | BRT test (1988): Must be (1) necessary to protect legitimate employer interest; (2) not impose undue hardship; (3) not injure the public; (4) reasonable in time... |
| North Carolina NC | Enforceable | Common law reasonableness. Must be in writing, supported by valuable consideration. No blue-penciling — courts void entirely if overly broad. Duration typically... |
| North Dakota ND | BANNED | N.D. Cent. Code § 9-08-06: Non-competes are VOID and UNENFORCEABLE in North Dakota. Exceptions only for: (1) partner in limited liability partnership selling th... |
| Ohio OH | Enforceable | ORC § 1335.01: Common law reasonableness. Must be reasonable in time, geography, and type of activity. Courts apply modified blue-penciling (reform) in some cas... |
| Oklahoma OK | BANNED | Oklahoma 15 Okl. St. § 219A (2016): Non-compete agreements are VOID and UNENFORCEABLE in Oklahoma. Only exceptions: (1) sale of business; (2) dissolution of par... |
| Oregon OR | Enforceable | ORS § 653.295 (2022 update): Duration max 12 months. Only enforceable if employer pays employee their base salary + benefits during the restricted period, OR em... |
| Pennsylvania PA | Enforceable | Common law standard (Hess v. Gebhard). Must be supported by adequate consideration (hiring alone sufficient; continuation of at-will employment may not be). Dur... |
| Rhode Island RI | Enforceable | Affordable Care Act (2016) exempts nurses and primary care physicians. Generally, reasonableness standard applies: duration max 3 years, geographic scope tied t... |
| South Carolina SC | Enforceable | Common law reasonableness. Must be reasonable in time, geographic area, and scope of activity. Duration typically max 2 years. Courts will void overly broad agr... |
| South Dakota SD | Enforceable | SDCL § 53-9-8 to 53-9-12: Non-competes are enforceable but must be reasonable. Duration max 2 years. Courts apply 3-part test: legitimate interest, reasonable r... |
| Tennessee TN | Enforceable | Common law reasonableness. Must protect legitimate business interest. Duration typically max 2 years. Geographic scope limited to territory where employee worke... |
| Texas TX | Enforceable | Tex. Bus. & Com. Code § 15.50-52: Enforceable only if (1) ancillary to or part of an otherwise enforceable agreement; (2) contains reasonable limitations on tim... |
| Utah UT | Enforceable | Post-Employment Restrictions Act (2016): Duration max 1 year. Must be reasonable in scope and geographic area. Employer must show legitimate protectable interes... |
| Vermont VT | Enforceable | Vermont enacted HB 556 (2024) restricting non-competes for low-wage workers. Non-competes enforceable if reasonable; duration typically max 2 years. Geographic ... |
| Virginia VA | Enforceable | Code of Virginia § 40.1-28.7:8 (2020): Non-competes VOID for "low-wage employees" (defined annually by average weekly wage — approximately $73,320 in 2024). For... |
| Washington WA | Enforceable | RCW 49.62 (2020): Non-competes VOID for employees earning ≤$120,559.99/year (2024 threshold, adjusts annually) or independent contractors earning ≤$301,399.99/y... |
| West Virginia WV | Enforceable | Common law reasonableness standard. Must be ancillary to a valid contract, protect legitimate business interest. Duration typically max 2 years. Geographic scop... |
| Wisconsin WI | Enforceable | Wis. Stat. § 103.465: Must be reasonable — not oppressive to employee, not hostile to public, not greater than employer needs for protection. Duration typically... |
| Wyoming WY | Enforceable | Common law reasonableness. Must be ancillary to a valid contract, protect legitimate business interest. Duration and geographic scope must be reasonable. Courts... |
Several states only allow non-competes for higher-paid employees. Below the threshold, the agreement is unenforceable regardless of what it says.
| State | Minimum Salary (approx., 2024–2026) | Notes |
|---|---|---|
| Colorado | $123,750/year | HB 22-1317 (eff. Aug 2022). Customer non-solicitation: $74,250+/yr |
| Illinois | $75,000/year | Illinois Freedom to Work Act (eff. Jan 2022) |
| Massachusetts | $75,000/year (or top 10% earner) | Massachusetts Noncompetition Agreement Act (2018) |
| Oregon | $113,241/year | Adjusts annually with inflation. ORS § 653.295 |
| Washington | $100,000/year (≈$121,000 adjusted 2024) | RCW 49.62 (eff. Jan 2020). Adjusts for inflation |
| DC | $150,000/year ($250,000 for medical specialists) | DC Non-Compete Amendment Act of 2020 (eff. Oct 2022) |
Thresholds adjust annually in some states. Verify current thresholds before drafting agreements. Data from LegalStack state legal data layer, verified from state statutes.
6 states have banned or severely restricted non-competes: California, District of Columbia, Hawaii, Minnesota, North Dakota, Oklahoma. California's ban is absolute (Cal. Bus. & Prof. Code § 16600). Minnesota banned them effective Jan 1, 2023. DC bans them for workers earning under $150,000/year.
No. California non-compete agreements are void and unenforceable under Cal. Bus. & Prof. Code § 16600 (amended January 1, 2024). The 2024 amendment also requires employers to notify current and former employees if they had signed non-competes — unilaterally voiding them. Very narrow exceptions apply only to the sale of a business or dissolution of a partnership.
In states that enforce non-competes, courts require the agreement to be: (1) Reasonable in duration — typically 6 months to 2 years maximum; (2) Reasonable in geographic scope — limited to the area where the employee actually worked; (3) Tied to a legitimate business interest — protecting trade secrets, specialized training, or customer relationships; (4) Supported by adequate consideration — employment itself (for new hires) or additional compensation (for existing employees). Courts may blue-pencil (rewrite) overly broad agreements in some states; others void them entirely.
The FTC issued a final rule in April 2024 that would have banned nearly all non-compete agreements for workers nationwide. Before the rule's effective date, the U.S. District Court for the Northern District of Texas issued a nationwide injunction blocking it. As of 2026, state law continues to govern non-compete enforceability. The FTC may pursue further rulemaking or litigation; the legal landscape is evolving.
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