Non-compete agreements restrict employees from working for competitors after leaving a job. Enforceability varies dramatically by state — California, Minnesota, North Dakota, and Oklahoma have banned them outright, while Florida and Texas are employer-friendly. The FTC issued a rule banning non-competes in 2024, but federal courts blocked it pending litigation. Use this tool to check your state's current law. This tool provides general information only, not legal advice. Consult a licensed attorney for legal guidance specific to your situation.
Check Your State's Non-Compete Law
Enforceability Status Key
FTC Non-Compete Rule (2024)
The FTC issued a final rule in April 2024 banning non-compete clauses for most workers nationwide. However, federal courts in Texas and Florida blocked the rule via injunctions before it took effect. As of 2025, the FTC rule is enjoined pending federal court challenges. Individual state laws remain in full effect. Monitor FTC.gov for updates.
How to Evaluate a Non-Compete Agreement
Non-compete agreements are among the most litigated employment law issues in the US. Before signing or challenging a non-compete, understanding your state's approach can save thousands in legal fees — or protect you from signing away rights you didn't realize you had.
Step 1: Check If Your State Enforces Non-Competes
Your first question is whether the state where you work enforces non-compete agreements at all. California, Minnesota, North Dakota, and Oklahoma have statutory bans — a non-compete is void regardless of what it says. If you live in California and an employer asks you to sign one, it's unenforceable (with limited exceptions for business sales).
Step 2: Check for Salary Thresholds
Many states now limit non-competes to higher earners. Colorado requires $123,750+/year (2024), Illinois $75,000+/year, Oregon $100,533+/year, and Washington $116,593+/year. If you earn below the threshold in these states, the agreement is unenforceable regardless of what you signed.
Step 3: Evaluate Reasonableness
Even in states that enforce non-competes, the agreement must be "reasonable" — courts evaluate duration (typically up to 2 years), geographic scope (limited to where you actually serviced customers), and activities restricted (specific competitors, not your entire industry). A 5-year nationwide non-compete for a local sales rep is almost certainly unenforceable.
Step 4: Review the Consideration
Non-competes must be supported by "consideration" — something of value. At hire, the job offer itself qualifies. But if you were asked to sign a non-compete months into employment with no raise or bonus, it may be void for lack of consideration in many states (including Pennsylvania). Agreements signed as a condition of promotion typically have adequate consideration.
FAQ
Is this non-compete enforceability guide free?
Yes, completely free with no signup required. This tool provides general information only, not legal advice. Consult a licensed attorney for legal guidance specific to your situation.
Which states have banned non-compete agreements?
California, North Dakota, Minnesota (2023), and Oklahoma have banned or nearly eliminated non-compete enforceability for most workers. California's ban is the most absolute — non-competes are void and unenforceable for employees regardless of when signed, with limited exceptions for business sales. Employers cannot even require employees to sign non-competes in these states.
What did the FTC do about non-compete agreements?
The FTC issued a final rule in April 2024 banning non-compete clauses nationwide for most workers. However, federal courts blocked the rule before it took effect — as of 2025, the FTC rule is enjoined pending litigation. The legal challenge centers on whether the FTC has authority to issue this type of broad rule. Individual state laws still apply and vary significantly.
How long can a non-compete agreement last?
Duration limits vary by state. Florida allows up to 2 years for most employees and 3 years for senior executives. Texas enforces 'reasonable' duration with courts typically accepting up to 2 years. Illinois limits non-competes to workers earning above $75,000/year and rarely enforces agreements exceeding 2 years. Courts in most states apply a reasonableness test — 6 months to 2 years is typically considered defensible.
Can I get out of a non-compete agreement?
Several strategies can invalidate or limit non-competes: relocating to a state where they're banned (like California), arguing the agreement lacks adequate consideration (especially if signed after employment started), showing the geographic or time scope is unreasonably broad, or demonstrating the employer breached the agreement first. Many non-competes are never enforced due to litigation costs — but violating one still carries legal risk.
Does a non-compete have to be signed on hire?
For a non-compete to be enforceable, it typically needs 'consideration' — something of value in exchange for the restriction. At hire, the job offer itself is sufficient consideration. For existing employees, many states require additional consideration beyond just continued employment: a raise, bonus, promotion, or other benefit. Courts in some states have voided non-competes signed mid-employment with no additional consideration.