This is a general reference, current as of 2026, not a substitute for a licensed attorney in the relevant state. Thresholds adjust annually, new state laws take effect on rolling dates throughout the year, and enforceability also depends on the specific worker's role, income, and the agreement's drafting. There is no federal non-compete rule — the FTC's 2024 rule was struck down in court and formally withdrawn in February 2026, so this is governed entirely by state law.
These states void virtually all employee/contractor non-competes, with narrow exceptions typically limited to the sale of a business or dissolution of a partnership/LLC.
| State | Status | Note |
|---|---|---|
| California | Void | Bus. & Prof. Code §16600; applies even to agreements signed outside the state |
| Minnesota | Void | Minn. Stat. §181.988, agreements after July 1, 2023 |
| North Dakota | Void | Century Code §9-08-06 |
| Oklahoma | Void | Customer non-solicitation still generally permitted |
| Montana | Void | Mont. Code §28-2-703; sale-of-business exception |
| Wyoming | Void (2025 statute) | Narrow executive/equity-holder carve-outs |
| Washington | Transitioning | Near-total ban effective June 30, 2027 — currently income-threshold based (see below) |
Non-competes are void below the listed income level; thresholds adjust for inflation and change year to year.
| State | 2026 threshold (approx.) | Note |
|---|---|---|
| Colorado | ~$127,091 | 14-day separate written notice required; $5,000 statutory penalty per violation |
| District of Columbia | ~$162,000 | Highest threshold nationally; written disclosure required before signing |
| Illinois | $75,000 | 14-day review period required (Illinois Freedom to Work Act) |
| Massachusetts | FLSA-exempt status | Requires garden-leave pay or other consideration; 12-month cap |
| Oregon | ~$116,427 | 12-month cap; 2-week advance notice required before employment begins |
| Tennessee | $70,000 | New via HB 1034, effective July 1, 2026 |
| Virginia | Tied to avg. weekly wage of overtime-eligible workers | Voids for low-wage/overtime-eligible workers |
| Washington (current) | ~$126,858 employees / ~$317,147 contractors | 2-week notice required; transitions to near-total ban June 2027 |
These states apply a general reasonableness test (duration, geography, scope, legitimate business interest) and, in most cases, will judicially narrow ("blue-pencil") an overbroad clause rather than void it outright. Most employer-friendly: Florida, Texas, Georgia, North Carolina. Also generally enforceable under a reasonableness standard: Alabama, Alaska, Arizona, Arkansas, Connecticut, Delaware, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Pennsylvania, South Dakota, Utah, Vermont, West Virginia, Wisconsin.
Given how much of this map is either void, income-gated, or procedurally fragile, a standalone non-compete is a weak default tool for most counterparties. The Non-Solicitation & Non-Interference Agreement covers the same underlying concern — protecting client and personnel relationships — with terms that hold up in nearly every state.