Non-Compete Laws by State
A non-compete agreement is a contract in which an employee promises not to work for a competitor, or start a competing business, for a period of time after the job ends. Employers use them to protect customer relationships, trade secrets and training investments. Whether a court will enforce one is decided by state law, and the rules differ widely from one state to the next.
50 states and DC compared. Last checked .
At a glance
- Enforceable against employees
- 46 of 50
- States and DC where the answer is yes or yes in some cases.
- Salary threshold: range
- $70,000 to $130,014
- Across the 5 jurisdictions with a single statewide figure.
- Advance notice required
- 9 of 27
- States and DC where the answer is yes or yes in some cases.
Compare non-compete laws
Some states ban employee non-competes with narrow exceptions, such as the sale of a business. Others allow them only for workers who earn above a set salary, or require the employer to give advance notice or extra consideration. Elsewhere, courts enforce a non-compete if it is reasonable in time, geography and scope. Several states changed their rules between 2023 and 2026. This guide compares those rules and links each one to its statute.
51 of 51 shown
| Status | Sources | ||||
|---|---|---|---|---|---|
| ALAlabama | Enforceable if reasonable (statute)Ala. Code 8-1-190 voids restraints of trade but allows employee non-competes limited to a specified area, subject to reasonable time and place limits. | Yes, if reasonable | Not listed | No | |
| AKAlaska | Enforceable if reasonable (case law)Under Data Management, Inc. v. Greene (Alaska 1988), courts may reasonably alter an overbroad covenant unless it was not drafted in good faith. | Yes, if reasonable | Not listed | Not listed | |
| AZArizona | Enforceable if reasonable (case law)Broadcast employers may not require non-competes (A.R.S. 23-494). | Yes, if reasonable | Not listed | Not listed | |
| ARArkansas | Enforceable if reasonable (statute)Courts must reform an overbroad covenant; continued employment is enough consideration. Physician non-competes are void (2025). | Yes, if reasonable | Not listed | No | |
| CACalifornia | BannedBus. & Prof. Code 16600 voids any employee non-compete that does not fit a statutory exception, such as the sale of a business. | No | Not listed | Not applicable (banned) | |
| COColorado | Restricted: highly compensated workers onlyAllowed only to protect trade secrets and no broader than reasonably necessary; customer non-solicits need 60% of the threshold. | Only with conditions | $130,014 (2026) | Yes, separate signed notice | |
| CTConnecticut | Enforceable if reasonable (case law)Physician covenants are capped at one year and 15 miles and need a separate signature (Conn. Gen. Stat. 20-14p). | Yes, if reasonable | Not listed | Not listed | |
| DEDelaware | Enforceable if reasonable (case law); physician covenants void6 Del. C. 2707 voids covenants restricting a physician's practice after the agreement ends. | Yes, if reasonable | Not listed | Not listed | |
| DCDistrict of Columbia | Banned except for highly compensated employeesSince October 1, 2022. Limit of 365 days after separation (730 days for medical specialists). | Only with conditions | $150,000 base, adjusted yearly | Yes, 14 days in writing | |
| FLFlorida | Enforceable if reasonable (statute)Under Fla. Stat. 542.335, 6 months or less is presumed reasonable for employees and more than 2 years presumed unreasonable. | Yes, if reasonable and in writing | Only for CHOICE Act covenants | Only for CHOICE Act covenants | |
| GAGeorgia | Restricted by role (statute)O.C.G.A. 13-8-53 bars post-employment non-competes for employees outside the listed sales, management, key and professional roles. | Only for certain roles | Not listed | No | |
| HIHawaii | Banned for tech employees; reasonableness test for othersHRS 480-4(d) voids non-compete and non-solicit clauses for technology business employees. | Only with conditions | Not listed | Not listed | |
| IDIdaho | Enforceable for key employees if reasonable (statute)Restrictions over 18 months need consideration beyond employment. | Yes, for key employees if reasonable | No dollar threshold | No | |
| ILIllinois | Restricted: salary threshold and noticeAlso void for construction workers and certain public union employees. | Only with conditions | More than $75,000 (2026) | Yes, 14 days and attorney advice | |
| INIndiana | Enforceable if reasonable (case law)Primary care physician non-competes barred (IC 25-22.5-5.5-2.5); physician non-competes with hospitals and hospital systems barred from July 1, 2025 (IC 25-22.5-5.5-2.3). | Yes, if reasonable | Not listed | Not listed | |
| IAIowa | Enforceable if reasonable (case law) | Yes, if reasonable | Not listed | Not listed | |
| KSKansas | Enforceable if reasonable (case law)The Kansas restraint of trade act does not apply to covenants not to compete (K.S.A. 50-163(e)(6)). | Yes, if reasonable | Not listed | Not listed | |
| KYKentucky | Enforceable with real consideration (case law)Under Charles T. Creech, Inc. v. Brown (Ky. 2014), a mid-employment non-compete failed because the employee's job did not change after signing. | Only with adequate consideration | Not listed | Not listed | |
| LALouisiana | Restricted: listed parishes, up to 2 yearsThe agreement must name the parishes or municipalities and can last no more than two years after employment ends. | Only within statutory limits | No salary threshold | No | |
| MEMaine | Restricted: wage floor, notice, delayed effectExcept for agreements with health care practitioners, an agreement takes effect only after 1 year of employment or 6 months from signing, whichever is later. | Only if reasonable and above wage floor | Above 400% of federal poverty level | Yes, 3 business days | |
| MDMaryland | Restricted: banned for lower-wage workersVoid for workers at or below 150% of the state minimum wage, licensed veterinary practitioners and technicians, and direct patient care health workers earning $350,000 or less. | Only above the wage threshold | Above 150% of state minimum wage ($22.50 an hour) | No | |
| MAMassachusetts | Restricted: exemptions, 12 months, noticeMust be supported by a garden leave clause (at least 50% of highest base salary) or other agreed consideration stated in the agreement. | Only if statutory conditions are met | Exempt employees only, no dollar figure | Yes, offer or 10 business days | |
| MIMichigan | Enforceable if reasonable (statute)Courts may limit an unreasonable agreement to make it reasonable. | Yes, if reasonable | No salary threshold | No | |
| MNMinnesota | Banned (agreements from July 1, 2023)Applies to agreements entered on or after July 1, 2023. Exceptions for the sale of a business and in anticipation of dissolution. Nondisclosure and nonsolicitation agreements are not covered. | No | Not applicable (banned) | Not applicable (banned) | |
| MSMississippi | Enforceable if reasonable (case law)In Redd Pest Control Co. v. Heatherly (1963), the court enforced the covenant only within a reasonable area. | Yes, if reasonable | Not listed | Not listed | |
| MOMissouri | Enforceable if reasonable (case law)RSMo 431.202 covers employee non-solicitation covenants and states it does not affect non-competes; courts apply a reasonableness test. | Yes, if reasonable | Not listed | Not listed | |
| MTMontana | Disfavored, enforceable if reasonable (statute)MCA 28-2-703 voids restraints except as statutes allow; courts review partial restraints for reasonableness and require a legitimate business interest. | Yes, if reasonable | Not listed | Not listed | |
| NENebraska | Restricted by case law: customer-based onlyCourts will not reform an unreasonable covenant; it is enforced as written or not at all. | Only if limited to the employee's customers | Not listed | Not listed | |
| NVNevada | Restricted: banned for hourly workersNRS 613.195 sets conditions for enforceable non-competes and bars them for hourly-paid employees. | Only for non-hourly employees | Hourly workers excluded, no dollar figure | No | |
| NHNew Hampshire | Restricted: low-wage ban, copy before offerAn agreement not disclosed to a new hire before acceptance of the offer cannot be enforced against the employee. | Only above wage floor and if disclosed | Above 200% of federal minimum wage | Yes, before the offer is accepted | |
| NJNew Jersey | Enforceable if reasonable (case law)Under Solari Industries v. Malady (1970), courts may partially enforce an overbroad covenant. | Yes, if reasonable | Not listed | Not listed | |
| NMNew Mexico | Enforceable if reasonable (case law)Based on Lovelace Clinic v. Murphy (1966), which upheld a reasonable covenant in a physician's employment agreement. | Yes, if reasonable | Not listed | Not listed | |
| NYNew York | Enforceable if reasonable (case law)Courts apply the BDO Seidman test. Senate bill S4641 (2025) to ban most non-competes passed the Senate but was in Assembly committee when checked. | Yes, if reasonable | Not listed | Not listed | |
| NCNorth Carolina | Must be in writing and signedG.S. 75-4 sets the writing requirement; it does not set salary or notice rules. | Not listed | No salary threshold | No | |
| NDNorth Dakota | Banned for employeesExceptions: sale of a business's goodwill, and partners, members or shareholders on dissolution or exit. | No | Not applicable (banned) | Not applicable (banned) | |
| OHOhio | Enforceable if reasonable (case law)Courts may modify an unreasonable covenant and enforce it to the extent needed to protect the employer. | Yes, if reasonable | Not listed | Not listed | |
| OKOklahoma | Banned; customer non-solicitation allowedAny contract provision that conflicts with this rule is void and unenforceable. | No | Not applicable (banned) | Not applicable (banned) | |
| OROregon | Restricted by statuteRequires exempt status, a protectable interest, a salary threshold, advance written notice and a maximum 12-month term. | Only with conditions | $119,541 (2026) | Yes, two weeks before start | |
| PAPennsylvania | Enforceable if reasonable; health care limitsCovers medical and osteopathic doctors, certified registered nurse anesthetists, certified registered nurse practitioners and physician assistants. | Yes, if reasonable | Not listed | Not listed | |
| RIRhode Island | Restricted by statuteThe statutory bar covers nonexempt employees, student interns and short-term student workers, workers 18 or younger and low-wage employees. | Only with conditions | Above 250% of federal poverty level | Not listed | |
| SCSouth Carolina | Enforceable if reasonable (case law)Covenants are disfavored and strictly construed against the employer. | Yes, if reasonable | Not listed | Not listed | |
| SDSouth Dakota | Allowed by statute, up to 2 yearsUp to two years, and only where the employer continues to carry on a like business. | Yes, within statutory limits | No salary threshold | No | |
| TNTennessee | Enforceable if reasonable; $70,000 pay floorSince July 1, 2026, a restraint of two years or less is presumed reasonable for employees, and courts may modify an overbroad covenant. | Only with conditions | $70,000 or more | Not listed | |
| TXTexas | Enforceable if reasonable (statute)Health care covenants made on or after Sept. 1, 2025 need a buyout capped at annual pay, a 1-year limit and a 5-mile radius. | Yes, if reasonable | No salary threshold | No | |
| UTUtah | Enforceable if reasonable, max 1 yearCommon-law reasonableness also applies; broadcasting employees have separate rules. | Yes, up to one year | Not listed | Not listed | |
| VTVermont | Enforceable if reasonable (case law)The employee bears the burden of showing the covenant is unreasonable. | Yes, if reasonable | Not listed | Not listed | |
| VAVirginia | Restricted by statuteAlso unenforceable if the employee is discharged without cause and without severance or other payment. | Only with conditions | Above state average weekly wage | No | |
| WAWashington | Restricted; full ban from June 30, 2027Until then, covenants over 18 months are presumed unreasonable and laid-off workers must be paid during the restriction. | Only with conditions | $126,858.83 (2026) | Yes, by offer acceptance | |
| WVWest Virginia | Enforceable if reasonable (case law) | Yes, if reasonable | Not listed | Not listed | |
| WIWisconsin | Enforceable if reasonable (statute)An unreasonable restraint makes the covenant void even as to any part that would be a reasonable restraint. | Yes, if reasonable | No salary threshold | No | |
| WYWyoming | Banned with exceptions (since July 1, 2025)Physician non-competes are void. | Only for executives and managers | No salary threshold | No |
General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.
What this means in practice
Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.
Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.
A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.
Non-Compete Laws: state by state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Frequently asked questions
Is there a federal ban on non-compete agreements?
No federal ban is in effect. The Federal Trade Commission adopted a rule in 2024 that would have banned most non-competes, but a federal court set it aside before it took effect and the agency later stopped defending it. State law still decides whether a non-compete is enforceable.
What makes a non-compete reasonable?
In states that enforce non-competes, courts usually look at whether the restriction protects a legitimate business interest, such as trade secrets or customer goodwill, and whether its length, geographic area and scope of activities are no broader than needed. Some courts can narrow an overly broad clause, while others strike it entirely.
What is a salary threshold for a non-compete?
Some states make a non-compete void unless the worker earns more than a set amount. The threshold may be a fixed dollar figure, a figure adjusted each year for inflation, or a figure tied to another benchmark. Workers below the threshold cannot be bound by the non-compete under those statutes.
Can a non-compete apply if I am fired or laid off?
It depends on the state. Some statutes make a non-compete unenforceable against a worker who is laid off or fired without cause, or require the employer to keep paying the worker during the restricted period. In other states, the reason the job ended is one factor a court may weigh.
Enforceable against employees: which states say yes?
Of the 50 jurisdictions we checked, the answer is yes in 27 jurisdictions, in some cases in 19, no in 4. Yes: Alabama, Alaska, Arizona, Arkansas, Connecticut, Delaware, Florida, Idaho, Indiana, Iowa, Kansas, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, New York, Ohio, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Vermont, West Virginia and Wisconsin. In some cases: Colorado, District of Columbia, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Nebraska, Nevada, New Hampshire, Oregon, Rhode Island, Tennessee, Virginia, Washington and Wyoming.
Which states have the highest and lowest salary threshold?
Among the 5 jurisdictions with a single statewide figure, salary threshold ranges from $70,000 (Tennessee) to $130,014 (Colorado). Check each state's page for exceptions.
Advance notice required: which states say yes?
Of the 27 jurisdictions we checked, the answer is yes in 8 jurisdictions, in some cases in 1, no in 18. Yes: Colorado, District of Columbia, Illinois, Maine, Massachusetts, New Hampshire, Oregon and Washington. In some cases: Florida.