Are non-compete agreements enforceable?

Enforceable by statute if reasonable and tied to a protectable interest (such as trade secrets, confidential information, or customer relationships). An employee non-compete limited to a specific geographic area is presumed reasonable at two years or less; a customer non-solicitation agreement is presumed reasonable at 18 months (or as long as post-separation pay continues, if longer). Job skills alone are not a protectable interest. Code of Alabama §§ 8-1-190, 8-1-191

Enforceable by statute if tied to an employment relationship, supported by a protectable business interest (such as trade secrets, customer lists, customer goodwill or confidential information), and limited in time and scope. A restriction of two years after employment ends is presumed reasonable. Courts must narrow an overbroad agreement rather than throw it out, and continued employment counts as enough consideration. The statute does not apply to people holding certain professional licenses. Ark. Code § 4-75-101

Generally void and unenforceable. Since January 1, 2024, it has been illegal for employers to enter into or try to enforce a void non-compete with California employees, even if it was signed outside California. Employees can sue for damages, an injunction and attorney's fees. Only limited statutory exceptions apply (such as certain sales of a business). Cal. Bus. & Prof. Code §§ 16600, 16600.1, 16600.5 (SB 699, AB 1076); California Attorney General consumer alert (Oct. 15, 2024)

Generally void. A non-compete is allowed only for highly compensated workers (pay at or above a yearly threshold set by the state) and only to protect trade secrets; customer non-solicitation agreements are allowed for workers earning at least 60% of that threshold. Separate notice rules apply. Employers that present or try to enforce a void non-compete face a $5,000 penalty per worker, plus damages and attorney's fees. C.R.S. § 8-2-113 (HB 22-1317)

Delaware's contract statute specifically voids non-competes between physicians that restrict practicing medicine in an area or for a period after the agreement ends (other terms, such as reasonable damages, can still be enforced). 6 Del. C. § 2707

Banned for most workers. Since October 1, 2022, employers may not require or ask a covered employee to sign a non-compete, and such provisions are void. The ban does not apply to highly compensated employees (those earning at least a yearly threshold that started at $150,000 and is adjusted for inflation); separate rules apply to them. Retaliation for refusing or asking about a non-compete is illegal. D.C. Code §§ 32-581.01, 32-581.02

Enforceable by statute if in writing, signed, and reasonably necessary to protect a legitimate business interest. For a former employee (not tied to a business sale), a restriction of 6 months or less is presumed reasonable and more than 2 years is presumed unreasonable. Under the 2025 CHOICE Act, employers may use non-competes of up to 4 years with higher-paid employees (earning more than twice the annual mean wage of the relevant Florida county), subject to the Act's requirements; health care practitioners are excluded from that Act. Fla. Stat. § 542.335; Fla. Stat. § 542.43 (CHOICE Act)

Enforceable under Georgia's Restrictive Covenants Act if reasonable in time, area and scope. After employment ends, non-competes can bind only employees who regularly solicit customers or make sales, managers, key employees and professionals; other employees can be bound only by customer non-solicitation and confidentiality terms. A post-employment restriction of two years or less is presumed reasonable, and longer is presumed unreasonable. Courts may narrow an overbroad covenant. O.C.G.A. §§ 13-8-53, 13-8-57

Non-compete and non-solicit clauses are banned in employment contracts for employees of technology businesses. For other employees, non-competes are governed by Hawaii's general restraint-of-trade law. HRS § 480-4(d)

Enforceable only against 'key employees' and key independent contractors, in writing, and only if reasonable in duration, geographic area and type of work and no broader than needed to protect the employer's legitimate business interests. A restriction of 18 months or less is presumed reasonable; more than 18 months requires extra consideration beyond the job itself. Idaho Code §§ 44-2701, 44-2704

Banned for employees earning $75,000 a year or less; customer/employee non-solicitation agreements are banned for employees earning $45,000 or less. Agreements that violate these limits are void. Other limits apply, including for workers laid off due to COVID-19 or similar circumstances. 820 ILCS 90/10 (Illinois Freedom to Work Act)

Under the Kansas Restraint of Trade Act, a restraint is lawful if it is reasonable in view of all the facts and circumstances and does not contravene public welfare. A written agreement in which an employee promises not to solicit the employer's 'material contact customers' is presumed enforceable if it lasts no more than two years after employment ends; an agreement not to recruit the employer's employees is presumed enforceable if it protects confidential or trade secret information or customer or supplier relationships, goodwill or loyalty, or lasts no more than two years after employment. If a covenant without that presumption is overbroad, the court must narrow it and enforce it as modified. Employees may still raise any legal or equitable defense. K.S.A. 50-163

Non-compete agreements are void except as the statute allows. An employee may agree not to compete with the employer or solicit its customers in specific listed parishes or cities where the employer does business, for up to two years after the job ends. La. R.S. 23:921

Non-compete agreements are against public policy and are enforceable only if reasonable and no broader than needed to protect trade secrets, confidential information or goodwill. They are banned for employees earning at or below 400% of the federal poverty level. Employers must say before making a job offer that a non-compete will be required and give a copy at least 3 business days before it must be signed. 26 M.R.S. §599-A

Non-competes are void for employees earning 150% of the state minimum wage or less, for licensed health care workers giving direct patient care who earn $350,000 a year or less, and for licensed veterinary practitioners and technicians. For direct-care health workers earning more than $350,000, a non-compete may last no more than 1 year and cover no more than 10 miles. Md. Code, Labor & Employment §3-716

Non-competes must be in writing, signed by both sides, state the right to consult a lawyer, and be given with the offer or 10 business days before work starts (or 10 business days' notice, with extra consideration, for current employees). They may last no more than 12 months and need garden-leave pay (at least 50% of highest base salary) or other agreed consideration. They cannot be enforced against non-exempt (overtime-eligible) employees, students in short-term jobs, workers laid off or fired without cause, or anyone 18 or younger. M.G.L. c. 149, §24L

Allowed if reasonable in length, geographic area and type of work and needed to protect the employer's reasonable competitive business interests. A court may narrow an unreasonable agreement and enforce it as limited. MCL 445.774a

Non-compete agreements are void and unenforceable in Minnesota (for agreements covered by the 2023 law), except those made in the sale or dissolution of a business. Non-disclosure and non-solicitation agreements are not covered by the ban. Minn. Stat. 181.988

Montana law says any contract that restrains someone from a lawful profession, trade or business is void to that extent, except agreements tied to the sale of a business's goodwill or the dissolution of a partnership. MCA 28-2-703

A non-compete is void unless it is supported by valuable consideration, is no broader than needed to protect the employer, and does not impose undue hardship. Non-competes cannot apply to employees paid solely by the hour, and cannot stop a former employee from serving customers who come to them without solicitation. After a layoff or restructuring, a non-compete is enforceable only while the employer keeps paying the employee. NRS 613.195

Non-competes are banned for low-wage employees (earning 200% of the federal minimum wage or less per hour). For new hires, the employer must give a copy of the non-compete before the job offer is accepted, or it cannot be enforced. RSA 275:70; RSA 275:70-a

A non-compete must be in writing and signed by the person agreeing not to compete, or it cannot be enforced. G.S. 75-4

Non-compete agreements are void in North Dakota. A contract that keeps anyone from practicing a lawful profession, trade or business is void to that extent. The only exceptions are a seller of a business's goodwill and owners/partners when a business dissolves or an owner leaves, who may agree not to compete within a reasonable area and time. N.D.C.C. § 9-08-06

Strictly limited. A non-compete is void unless: the employer gave written notice in an offer at least two weeks before the job started (or it was signed upon a real promotion); the employee is a salaried exempt worker; the employer has a protectable interest such as trade secrets; the employer gives a signed copy within 30 days after the job ends; and the employee's annual salary and commissions at termination exceed an inflation-adjusted threshold (base $100,533). It may last no more than 12 months. Customer and employee non-solicitation agreements are not covered by these limits. ORS 653.295

Non-compete agreements cannot be enforced against: employees who are non-exempt under the federal FLSA (generally hourly workers); student interns or short-term student workers; employees 18 or younger; and low-wage employees (earning no more than 250% of the federal poverty level). For other employees, there is no general statute; courts decide case by case. R.I. Gen. Laws §§ 28-59-2, 28-59-3 (Rhode Island Noncompetition Agreement Act)

Allowed by statute within limits. An employee may agree, at hiring or during employment, not to compete in the same business and not to solicit existing customers within a specified county, city or other area for up to two years after the agreement ends, if the employer keeps doing a similar business there. Since July 1, 2023, such provisions are voidable for certain licensed health care practitioners (such as physicians and physician assistants). SDCL §§ 53-9-11, 53-9-11.1, 53-9-11.2

Enforceable if it is part of an otherwise enforceable agreement and is reasonable in time, geographic area and scope, restraining no more than needed to protect the employer's goodwill or other business interests. Special requirements apply to covenants involving physicians (for example, a buyout option and access to patient lists and records). Tex. Bus. & Com. Code § 15.50

Non-compete agreements signed on or after May 10, 2016 may last no more than one year after the job ends; longer agreements are void. Starting May 6, 2026, non-competes with healthcare workers are not allowed. Special limits apply to broadcasting employees. Courts also apply general common-law reasonableness rules. Utah Code § 34-51-201

Employers may not enter into, enforce or threaten to enforce a non-compete with a low-wage employee (generally, someone earning less than the state average weekly wage or eligible for overtime, including interns and students) or with a licensed health care professional. Also, no non-compete is enforceable if the employer fires the employee without cause and without severance or other payment disclosed when the agreement was signed. Employees can sue an employer that tries to enforce a banned non-compete. For other employees, courts decide case by case. Va. Code § 40.1-28.7:8

Currently limited: a non-compete is void unless the terms were disclosed in writing by the time the job offer was accepted (or, if signed later, extra consideration is given); the employee's annualized earnings exceed $100,000 adjusted each year for inflation; and, if the employee is laid off, the employer pays base salary during the restricted period. Non-competes over 18 months are presumed unreasonable. Starting June 30, 2027, all non-compete agreements become void and unenforceable, no matter when they were signed. RCW 49.62.020

Enforceable only if the restrictions on territory and time are reasonably necessary to protect the employer. If any part of a non-compete is an unreasonable restraint, the entire covenant is void and unenforceable, even the reasonable parts. Wis. Stat. § 103.465

Generally void. A non-compete that restricts a person's right to be paid for skilled or unskilled labor is void, except for: sale of a business; protection of trade secrets; repayment of relocation, education and training costs on a sliding scale (up to 100% if employed less than 2 years, 66% for 2-3 years, 33% for 3-4 years); and executive and management personnel and their professional staff. Non-competes restricting physicians from practicing medicine after leaving are void. W.S. 1-23-108