Non-compete agreements: are they enforceable in your state?

What a non-compete is, and what it is not

The New York Attorney General defines it simply: a noncompete agreement prohibits an employee from working for a competitor or opening a competing business, typically for a certain period of time after an employee leaves a job. It may be one section of your employment contract or a separate paper you sign before or after you start. Minnesota's statute adds the usual three forms: a promise not to work for another employer for a specified time, in a specified area, or in a similar capacity. New York Attorney General: Noncompete agreements · Minn. Stat. § 181.988, subd. 1

Did the FTC ban non-competes? Where the federal rule stands

No: the FTC's nationwide ban never took effect, and it has been removed. The FTC published its Non-Compete Clause Rule in the Federal Register on May 7, 2024. Its own page now says: "The Noncompete Rule is not in effect and it is not enforceable." What replaced it is enforcement against particular employers under the FTC Act, one case at a time. FTC: Noncompete Rule · 89 FR 38342

1. May 7, 2024

   The FTC publishes the Non-Compete Clause Rule, which would have made most non-competes an unfair method of competition.

2. August 20, 2024

   A federal district court issues an order stopping the FTC from enforcing the rule, finding the FTC lacks the authority.

3. October 18, 2024

   The FTC appeals.

4. September 4, 2025

   The FTC orders pet cremation company Gateway Services to stop enforcing non-competes that covered almost all of its nearly 1,800 employees.

5. September 5, 2025

   The FTC votes 3-1 to dismiss its appeals, including Ryan, LLC v. FTC in the Fifth Circuit, and to accede to the vacatur of the rule.

6. September 10, 2025

   The FTC Chairman sends warning letters to several large healthcare employers and staffing firms about their non-competes.

7. November 25, 2025

   The FTC finalizes the Gateway consent order.

8. January 27, 2026

   The FTC holds a workshop on employee non-compete agreements.

9. February 12, 2026

   A Federal Register notice removes the Non-Compete Rule to conform to the federal court decisions.

10. April 15, 2026

    The FTC orders pest-control company Rollins to stop enforcing non-competes against more than 18,000 employees; the order is finalized on June 22, 2026.

11. May 8, 2026

    The FTC Chairman sends a warning letter to mortgage services provider Mortgage Connect.

Non-compete laws by state

The rules the checker uses, read from each state's statute, agency or attorney general on October 22, 2026, with 2026 pay figures. Where a state's own sites refused requests from here, the row says so and relies on the FTC's published digest of state law (Federal Register, January 19, 2023 and May 7, 2024). In every state without a ban, courts also ask whether the agreement is reasonable: in the FTC's words, "In the 47 states where at least some non-compete clauses may be enforced, courts use a reasonableness inquiry". 88 FR 3482 · 89 FR 38342 · the state sources listed at the end of this page

• Wyoming: void since July 1, 2025, with exceptions. Exceptions: the sale of a business, protecting trade secrets, executive and management personnel and their professional staff, and recovery of relocation, education and training costs: up to 100% if you leave within 2 years, 66% between 2 and 3 years, 33% between 3 and 4 years. Non-competes that keep physicians from practicing are void.Wyo. Stat. § 1-23-108
• Maine: a waiting period and a fine. Even a lawful non-compete does not take effect until after 1 year of employment or 6 months after signing, whichever is later (health-care practitioners aside). An employer that breaks the pay floor or notice rule faces a fine of at least $5,000.26 M.R.S. § 599-A(5), (6)
• Maryland: health care and veterinarians. Void for veterinarians and for licensed health-care workers giving direct patient care who earn $350,000 a year or less, for agreements from July 1, 2025. Above $350,000, the limit is 1 year after the last day and 10 miles from the primary place of employment. From October 1, 2026, Chapter 301 adds some employees of licensed architects. The pay floor is 150% of the $15 minimum wage: $22.50 an hour, about $46,800 for a 2,080-hour year.Md. Code, Lab. & Empl. § 3-716
• Virginia: low pay, overtime, health care, and no severance. Void for anyone whose average weekly earnings are below $1,507.01 (about $78,364.52 a year), for anyone entitled to federal overtime, and from July 1, 2026 for licensed health-care professionals. For agreements from July 1, 2026, a non-compete cannot be enforced if you are let go without cause and without the severance disclosed when you signed. The civil penalty is $10,000 per violation, and you may sue within 2 years.Va. Code § 40.1-28.7:8
• DC: 365 days and 14 days. For employees earning $162,164 or more, the agreement must be given in writing 14 days before you start or sign, and may last at most 365 calendar days after you leave: 730 days for medical specialists earning $270,274 or more.D.C. Code § 32-581.03
• Florida: presumptions, and the CHOICE Act. For a former employee, 6 months or less is presumed reasonable and more than 2 years unreasonable. Since July 1, 2025, a covered employee, paid more than twice the annual mean wage of the county, can be bound for up to 4 years if advised in writing to seek counsel and given the agreement at least 7 days before the offer expires. Health-care practitioners are excluded.Fla. Stat. §§ 542.335(1)(d), 542.43, 542.45
• Utah: one year, and health care and vets from May 6, 2026. A non-compete signed on or after May 10, 2016 may not last more than one year after you leave. From May 6, 2026, a non-compete with a healthcare worker is not allowed, nor with a veterinarian who owns less than 5% of the business.Utah Code § 34-51-201
• Hourly and non-exempt workers. A Nevada non-compete may not apply to an employee paid only by the hour. Massachusetts and Rhode Island do not enforce them against workers who are non-exempt under the Fair Labor Standards Act, Virginia voids them for anyone entitled to federal overtime, and Oregon allows them only for salaried exempt employees. New Hampshire uses pay: 200% of the $7.25 federal minimum wage, $14.50 an hour, about $30,160 a year.NRS 613.195(3) · M.G.L. c. 149, § 24L(c) · R.I. Gen. Laws § 28-59-3(a)(1) · RSA 275:70-a · 29 U.S.C. § 206

Is my non-compete enforceable? What courts look at

Outside the ban states, the question is reasonableness. The New York Attorney General's four conditions are a good map of what most courts ask; a court will not enforce a noncompete unless it meets all of them. New York Attorney General

• It is necessary to protect the employer's legitimate interests, such as trade secrets, confidential information, or specialized skills gained on the job.
• It does not put an unnecessary hardship on you.
• It does not harm the public.
• It is reasonable in time period and geographic scope, and no greater than needed to protect those interests.

• Texas: ancillary and reasonable. Texas law enforces a covenant not to compete only if it is ancillary to or part of an otherwise enforceable agreement and contains reasonable limitations as to time, geographical area and scope of activity. The Texas Workforce Commission notes that the employer must show how non-enforcement would harm it.Tex. Bus. & Com. Code § 15.50 · Texas Workforce Commission
• A court may cut it down, or throw it out. If parts are unreasonable, the New York Attorney General says a court may invalidate the agreement entirely, or enforce it for a shorter time or in a smaller area.New York Attorney General
• Length limits and presumptions. Some states put a number on reasonable: 12 months in Oregon, Utah and Massachusetts, 365 days in DC, two years in Louisiana and South Dakota. Others presume: Washington presumes more than 18 months unreasonable, Arkansas presumes two years reasonable, and Florida presumes 6 months or less reasonable and more than 2 years unreasonable.ORS 653.295 · La. R.S. 23:921 · SDCL 53-9-11 · RCW 49.62.020 · Ark. Code § 4-75-101 · Fla. Stat. § 542.335
• Health-care workers have their own rules. Many states limit non-competes for physicians or other health-care workers: Connecticut (one year, fifteen miles for physicians), Texas, Maryland, Virginia, Maine, Utah, Oregon (Senate Bill 951 of 2025, changed by HB 3410), South Dakota, Indiana, New Mexico, Iowa and Kentucky among them. Check your state's row.Conn. Gen. Stat. § 20-14p · the state rows above

Worked examples with real numbers

Example 1: the same $65,000 salaried job in four states. An exempt, salaried worker earning $65,000 a year signed a 12-month non-compete and is leaving. L&I · 7 CCR 1103-14 · Oregon BOLI · 88 FR 3482

Washington

Void$65,000 is not more than $126,858.83, the 2026 floor.

Colorado

Void$65,000 is below $130,014, the 2026 highly compensated figure.

Oregon

Void, unless paid garden leave$65,000 is not more than $119,541. The employer could still enforce it only by paying, for the 12 months, the greater of 50% of $65,000 ($32,500) or 50% of $119,541 ($59,770.50).

Massachusetts

Not void for payAn exempt worker can be bound, but only for 12 months at most, with prior notice and garden leave pay.

Example 2: Minnesota, a month apart. Two co-workers signed the same 12-month non-compete: one on June 15, 2023, the other on July 15, 2023. Both leave on October 22, 2026. Minn. Stat. § 181.988 · Minnesota Session Laws 2023, chapter 53

Signed June 15, 2023

Courts decideBefore July 1, 2023, so the ban does not reach it; a court asks whether it is reasonable.

If enforced, it ends

October 22, 2027October 22, 2026 + 12 months.

Signed July 15, 2023

VoidOn or after July 1, 2023: void and unenforceable, and a court may award attorney fees.

Still binding for both

Non-solicitation and NDAMinnesota's ban does not cover them.

Example 3: Virginia weekly pay. A worker paid $1,200 a week, $62,400 a year, signed a non-compete. Va. Code § 40.1-28.7:8 · Virginia DOLI

Average weekly earnings

$1,200Earnings in the last 52 weeks divided by 52.

State average weekly wage

$1,507.01From July 1, 2026.

Result

Low-wage employee: voidThe employer may not enter into, enforce or threaten to enforce it; the penalty is $10,000 per violation.

Can you say no to a non-compete, or negotiate it?

Yes, you can refuse or negotiate, but the employer can also decline to hire you. The New York Attorney General puts it plainly: no law requires you to sign a noncompete, but an employer is allowed to ask you to sign one before or after you start work, and a noncompete is a contract whose terms you can try to negotiate. Some states give you time and information first. New York Attorney General

• Notice before you sign. Oregon: written notice at least two weeks before you start. Maine: a copy at least 3 business days before you must sign. DC: in writing 14 days before. Washington: disclosed in writing by the time you accept the offer. New Hampshire: a copy before you accept the offer (since July 28, 2014).ORS 653.295 · 26 M.R.S. § 599-A(4) · D.C. Code § 32-581.03 · RCW 49.62.020 · RSA 275:70
• Something in return. Washington requires independent consideration for a non-compete signed after you start. The New York Attorney General suggests asking what you get for signing: a bonus, training, guaranteed employment, or pay for the restricted period.Washington Attorney General · New York Attorney General
• No retaliation for asking, in DC. DC employers may not retaliate against a worker who refuses a prohibited non-compete or asks about one.D.C. Code § 32-581.03

1. 1Ask before you accept the job. The New York Attorney General suggests asking the employer whether you will have to sign a noncompete before you accept a new job.
2. 2Check the four questions. Which businesses count as competitors, how long it lasts, what area it covers, and what you get in exchange.
3. 3Check your state's row. If your pay is under the floor, or you are paid by the hour, the clause may be void, and in several states the employer should not have asked.
4. 4Ask for narrower terms in writing. A shorter time, a smaller area, a list of named competitors instead of a whole industry, a customer non-solicitation instead of a non-compete, or pay during the restricted period.
5. 5Have it reviewed. A lawyer can review it or negotiate for you; see find a lawyer or legal aid.

Leaving for a competitor: what to do first

If you have signed a noncompete and are thinking of leaving, the New York Attorney General's advice is to consider whether your new job would violate its terms, and to seek legal advice if you are not sure. New York Attorney General

1. 1Get a copy of what you signed. Ask HR for the agreement and any later amendment. The letter below asks for it and asks whether the employer intends to enforce it, with a 10-day reply date.
2. 2Find your dates. The date you signed decides which version of the law applies in Minnesota, Wyoming, Utah, Oregon, Virginia and others. The date you leave starts the restricted period.
3. 3Take nothing confidential. Return company property and files. Nondisclosure duties usually survive even where the non-compete is void.
4. 4Read the non-solicitation clause separately. Even in Oklahoma, an agreement may stop you from directly soliciting established customers, and Minnesota's ban does not cover non-solicitation.
5. 5Decide what to tell people. We found no rule in the statutes on this page that requires you to tell your old employer where you are going; your agreement may. Some employers send a letter to the new employer, the New York Attorney General notes, so it helps if your new employer has seen the agreement.

What happens if you break a non-compete

An employer can file a lawsuit and ask a court to enforce the noncompete and order you to follow its terms; some send a letter to you or your new employer threatening to sue, the New York Attorney General says. If you get one, a common first step is a calm, short reply that asks for the agreement and says you are getting advice; see cease and desist letters for how these letters work. New York Attorney General

• An injunction: an order to stop. The main remedy is a court order. In Florida, a court enforces a restrictive covenant by temporary and permanent injunctions, a violation of an enforceable covenant is presumed to cause irreparable injury, and no temporary injunction issues unless the employer posts a bond. Under Florida's CHOICE Act, a court must grant a preliminary injunction for a covered agreement.Fla. Stat. §§ 542.335(1)(j), 542.45
• Damages: lost profits. In Louisiana, breaking a valid non-compete may entitle the employer to damages for its loss and lost profits, and a court shall order injunctive relief without proof of irreparable injury.La. R.S. 23:921(H)
• You can sue too, in some states. California lets you seek damages, an injunction and attorney fees from an employer that tries to enforce a void non-compete. Virginia lets a covered worker sue within 2 years and recover lost compensation, damages and fees. Minnesota and Washington allow attorney fees.Cal. Bus. & Prof. Code § 16600.5 · Va. Code § 40.1-28.7:8(D) · Minn. Stat. § 181.988 · Washington Attorney General
• If you are sued. A court case has deadlines to answer. If the employer sues in federal court, see answering a federal lawsuit and a federal summons.New York Attorney General

What to do next

For the rest of your rights when a job ends, the Work and wages guide lists every topic and agency.

Getting help

State attorneys general enforce several of these laws and take complaints: New York (1-800-771-7755), California (oag.ca.gov/report), Illinois, and Washington's Antitrust Division. An employment lawyer or legal aid office can read the agreement with you.

Common questions

Official sources

1. FTC: Noncompete Rule page (not in effect; the August 20, 2024 court order; the October 18, 2024 appeal; the September 5, 2025 steps; read October 22, 2026) ftc.gov
2. FTC press release, September 5, 2025: Federal Trade Commission Files to Accede to Vacatur of Non-Compete Clause Rule (vote 3-1) ftc.gov
3. FTC press release, September 4, 2025: FTC Takes Action to Protect Workers from Noncompete Agreements (Gateway Services) ftc.gov
4. FTC: noncompete actions list (Gateway final order November 25, 2025; warning letters September 10, 2025; workshop January 27, 2026; rule removal February 12, 2026; Rollins April 15 and June 22, 2026; Mortgage Connect May 8, 2026) ftc.gov
5. FTC Non-Compete Clause Rule, 89 FR 38342 (Federal Register, May 7, 2024): state laws digest, health-care statutes govinfo.gov
6. FTC proposed Non-Compete Clause Rule, 88 FR 3482 (Federal Register, January 19, 2023): digest of state laws and the reasonableness test govinfo.gov
7. New York Attorney General: Noncompete agreements (read October 22, 2026) ag.ny.gov
8. California Attorney General consumer alert on non-competes, no-poach agreements and TRAPs (SB 699 and AB 1076) oag.ca.gov
9. Minn. Stat. § 181.988 (2023 c. 53, art. 6, s. 1) revisor.mn.gov
10. Minnesota Session Laws 2023, chapter 53, article 6, section 1: effective July 1, 2023, for agreements entered into on or after that date revisor.mn.gov
11. N.D. Cent. Code chapter 9-08 (§ 9-08-06), North Dakota Legislative Branch PDF ndlegis.gov
12. Oklahoma Statutes Title 15 (§§ 217, 219A, 219B), Oklahoma Senate PDF, December 2019 oksenate.gov
13. Wyoming 2025 Enrolled Act No. 87 (SF0107): Wyo. Stat. § 1-23-108, contracts entered into on and after July 1, 2025 wyoleg.gov
14. Washington L&I: Non-compete agreements and the 2026 earnings thresholds (RCW 49.62) lni.wa.gov
15. Washington Attorney General: Labor and antitrust (RCW 49.62; the 2026 amendments, ban from June 30, 2027) atg.wa.gov
16. Oregon BOLI: Noncompetition agreements (ORS 653.295; 2026 minimum $119,541) oregon.gov
17. Colorado 2026 PAY CALC Order, 7 CCR 1103-14 (adopted December 8, 2025; effective February 1, 2026): highly compensated $130,014 sos.state.co.us
18. Illinois Attorney General, November 14, 2024: enforcing the Illinois Freedom to Work Act ($75,000 per year or less) illinoisattorneygeneral.gov
19. 26 M.R.S. § 599-A (Maine Revisor, data extracted October 5, 2026) legislature.maine.gov
20. HHS: 2026 poverty guidelines ($15,960 for one person in the 48 contiguous states and DC) aspe.hhs.gov
21. Md. Code, Labor and Employment § 3-716 (current text) mgaleg.maryland.gov
22. Maryland Department of Labor: Maryland minimum wage ($15 per hour) labor.maryland.gov
23. Maryland 2024 Laws, Chapter 378 (HB 1388): health-care and veterinary rules for agreements from July 1, 2025 mgaleg.maryland.gov
24. Maryland 2026 Laws, Chapter 301 (HB 1016): licensed architects, effective October 1, 2026 mgaleg.maryland.gov
25. 29 U.S.C. § 206: federal minimum wage of $7.25 an hour govinfo.gov
26. Va. Code § 40.1-28.7:8 (2020, cc. 948, 949; 2025, c. 585; 2026 chapters) law.lis.virginia.gov
27. Virginia DOLI, July 1, 2026: new non-compete protections; average weekly wage $1,507.01 doli.virginia.gov
28. D.C. Department of Employment Services: 2026 public notice on non-compete clauses ($162,164; $270,274) does.dc.gov
29. D.C. Code § 32-581.03: highly compensated employees (365 and 730 calendar days, 14 days) code.dccouncil.gov
30. Texas Workforce Commission: Non-competition agreements (Tex. Bus. & Com. Code §§ 15.50, 15.501) twc.texas.gov
31. Texas SB 1318 (89th Legislature), enrolled: health-care non-competes, effective September 1, 2025 capitol.texas.gov
32. Fla. Stat. § 542.335 (2025): restrictive covenants, presumptions, injunctions flsenate.gov
33. Fla. Stat. § 542.43 (2025): CHOICE Act definitions (ch. 2025-213) flsenate.gov
34. Fla. Stat. § 542.45 (2025): covered noncompete agreements flsenate.gov
35. Florida Senate: 2025 bill page, chapter 2025-213, effective July 1, 2025 flsenate.gov
36. La. R.S. 23:921 (Acts 2024, No. 273, eff. January 1, 2025) legis.la.gov
37. Utah Code § 34-51-201 (amended by 2026 General Session chapter 341, effective May 6, 2026) le.utah.gov
38. Utah Code § 34-51-202 (2026): exceptions (severance agreements, sale of a business) le.utah.gov
39. SDCL 53-9-11: competition limitation upon termination sdlegislature.gov
40. SDCL 53-9-11.2: practitioners (from July 1, 2023) and community services providers (from July 1, 2026) sdlegislature.gov
41. Arkansas Act 921 of 2015 (Ark. Code § 4-75-101), approved April 1, 2015 arkleg.state.ar.us
42. Conn. Gen. Stat. § 20-14p: physicians (P.A. 16-95; P.A. 23-97) cga.ct.gov
43. Conn. Gen. Stat. §§ 31-50a, 31-50b: security guards and broadcast employees cga.ct.gov
44. Iowa Code § 135Q.2: health care employment agencies legis.iowa.gov
45. RSMo § 431.202: employee non-solicitation covenants revisor.mo.gov
46. Mont. Code Ann. § 28-2-703 (Montana Code Annotated 2025) leg.mt.gov

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