Non-Compete Statistics (2026)

In 2024, the FTC estimated that approximately 30 million US workers, about one in five, were subject to a non-compete.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2014, approximately 18% of US labor force participants were bound by a non-compete, according to a survey by Starr, Prescott and Bishara.

Journal of Law and Economics (Starr, Prescott and Bishara), Noncompete Agreements in the US Labor Force

In 2014, 38% of US labor force participants had agreed to at least one non-compete in the past, according to a survey by Starr, Prescott and Bishara.

Journal of Law and Economics (Starr, Prescott and Bishara), Noncompete Agreements in the US Labor Force

In 2022, 11.4% of US adult workers currently had a non-compete, according to Federal Reserve survey data analyzed by the Federal Reserve Bank of Minneapolis.

Federal Reserve Bank of Minneapolis, New data on non-compete contracts and what they mean for workers

In 2017, 49% of US business establishments with 50 or more employees used non-competes for at least some employees, according to an Economic Policy Institute survey cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2017, 32% of US business establishments with 50 or more employees used non-competes for all of their employees, according to an Economic Policy Institute survey cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2014, 14% of US workers without a bachelor's degree were working under a non-compete, according to the Starr, Prescott and Bishara survey as cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2014, 13% of US workers earning less than $40,000 per year were working under a non-compete, according to the Starr, Prescott and Bishara survey as cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2014, 53% of US workers covered by non-competes were hourly workers, according to an analysis of the Starr, Prescott and Bishara survey cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2015, 30% of hair stylists worked under a non-compete, according to a survey of independent hair salon owners cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2022, 19.2% of US workers in professional services had a non-compete, according to the Federal Reserve Bank of Minneapolis.

Federal Reserve Bank of Minneapolis, New data on non-compete contracts and what they mean for workers

In 2022, 13.2% of US workers aged 35 to 44 reported having a non-compete, according to the Federal Reserve Bank of Minneapolis.

Federal Reserve Bank of Minneapolis, New data on non-compete contracts and what they mean for workers

In 2014, non-compete rates ranged from 9% in agriculture and hunting to 32% in the information industry, according to the Starr, Prescott and Bishara survey as cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2014, only 10% of US employees negotiated over their non-competes, according to the Starr, Prescott and Bishara survey.

Journal of Law and Economics (Starr, Prescott and Bishara), Noncompete Agreements in the US Labor Force

In 2014, about one-third of US employees with non-competes were presented with them after already accepting a job offer, according to the Starr, Prescott and Bishara survey.

Journal of Law and Economics (Starr, Prescott and Bishara), Noncompete Agreements in the US Labor Force

In 2022, 7.0% of workers in California, North Dakota and Oklahoma, states that do not enforce non-competes, had one anyway, according to the Federal Reserve Bank of Minneapolis.

Federal Reserve Bank of Minneapolis, New data on non-compete contracts and what they mean for workers

In 2022, 12.0% of workers in the 47 states that enforce non-competes had one, according to the Federal Reserve Bank of Minneapolis.

Federal Reserve Bank of Minneapolis, New data on non-compete contracts and what they mean for workers

A nationwide ban on non-competes would increase average earnings by approximately 3% to 14%, according to a study by Johnson, Lavetti and Lipsitz updated in 2023 and cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

After Oregon stopped enforcing non-competes for hourly workers, their wages increased by 2% to 3%, according to a 2022 study by Lipsitz and Starr cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

After Oregon's ban on non-competes for hourly workers, wages rose 4.6% in occupations that used non-competes at a relatively high rate, according to a 2022 study by Lipsitz and Starr cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

After Hawaii banned non-competes for high-tech workers in 2015, earnings of new hires increased by about 4%, according to a study by Balasubramanian et al. cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

Hawaii's ban on non-competes for high-tech workers increased their job mobility by 12.5%, according to a 2022 study by Balasubramanian et al. cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

Oregon's ban on non-competes for hourly workers increased their job mobility by 17.3%, according to a 2022 study by Lipsitz and Starr cited by the FTC.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2024, the FTC estimated its non-compete ban would increase US workers' total earnings by $400 billion to $488 billion over ten years.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2024, the FTC estimated that banning non-competes would raise earnings for the average worker by an additional $524 per year.

Federal Trade Commission, FTC Announces Rule Banning Noncompetes

In 2024, the FTC estimated that banning non-competes would lower health care costs by up to $194 billion over the next decade.

Federal Trade Commission, FTC Announces Rule Banning Noncompetes

In 2024, the FTC estimated that banning non-competes would increase the rate of new firm formation by 2.7%.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

In 2024, the FTC estimated that banning non-competes would lead to more than 8,500 additional new businesses each year.

Federal Trade Commission, FTC Announces Rule Banning Noncompetes

In 2024, the FTC estimated that banning non-competes would lead to 17,000 to 29,000 more patents each year.

Federal Trade Commission, FTC Announces Rule Banning Noncompetes

The FTC received more than 26,000 public comments on its proposed non-compete rule, which it finalized in 2024.

Federal Trade Commission, FTC Announces Rule Banning Noncompetes

In 2024, the FTC estimated that approximately 0.75% of workers are senior executives whose existing non-competes the rule would have left in force.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

The 2024 FTC rule defined senior executives as workers earning more than $151,164 annually in policy-making positions.

Federal Trade Commission, FTC Announces Rule Banning Noncompetes

On August 20, 2024, a federal district court issued an order stopping the FTC from enforcing its non-compete rule, according to the FTC.

Federal Trade Commission, FTC Announces Rule Banning Noncompetes

On September 5, 2025, the FTC voted 3-1 to dismiss its appeals and accede to the vacatur of the non-compete rule.

Federal Trade Commission, Federal Trade Commission Files to Accede to Vacatur of Non-Compete Clause Rule

Effective February 12, 2026, the FTC removed the Non-Compete Clause Rule from the Code of Federal Regulations.

Federal Trade Commission (Federal Register), Revision of the Negative Option Rule, Withdrawal of the CARS Rule, Removal of the Non-Compete Rule To Conform These Rules to Federal Court Decisions

In 2024, the FTC noted that in three states, California, North Dakota and Oklahoma, employers generally cannot enforce non-competes.

Federal Trade Commission (Federal Register), Non-Compete Clause Rule (final rule, 89 FR 38342)

Minnesota's ban making covenants not to compete void and unenforceable took effect on July 1, 2023.

Minnesota Legislature (Office of the Revisor of Statutes), Laws of Minnesota 2023, chapter 53, article 6 (Minn. Stat. 181.988)

Wyoming's law making most covenants not to compete void took effect on July 1, 2025.

Wyoming Legislature, Enrolled Act No. 87 (SF0107), 2025 General Session

In 2026, Washington non-competes are void for employees earning less than $126,858.83, according to the Washington State Department of Labor & Industries.

Washington State Department of Labor & Industries, Non-Compete Agreements

Oregon law limits the term of an employee non-compete to 12 months from the date of termination.

Oregon Legislature (via Oregon.public.law), ORS 653.295 Noncompetition agreements