Reference — Not Legal Advice

Non-Compete Enforceability by State

Read before relying on this

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 There is no federal non-compete rule — the FTC's 2024 rule was struck down in court and formally withdrawn in February 2026, so this is governed entirely by state law.

Near-total bans

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.

StateStatusNote
CaliforniaVoidBus. & Prof. Code §16600; applies even to agreements signed outside the state
MinnesotaVoidMinn. Stat. §181.988, agreements after July 1, 2023
North DakotaVoidCentury Code §9-08-06
OklahomaVoidCustomer non-solicitation still generally permitted
MontanaVoidMont. Code §28-2-703; sale-of-business exception
WyomingVoid (2025 statute)Narrow executive/equity-holder carve-outs
WashingtonTransitioningNear-total ban effective June 30, 2027 — currently income-threshold based (see below)

Income-threshold restrictions

Non-competes are void below the listed income level; thresholds adjust for inflation and change year to year.

State2026 threshold (approx.)Note
Colorado~$127,09114-day separate written notice required; $5,000 statutory penalty per violation
District of Columbia~$162,000Highest threshold nationally; written disclosure required before signing
Illinois$75,00014-day review period required (Illinois Freedom to Work Act)
MassachusettsFLSA-exempt statusRequires garden-leave pay or other consideration; 12-month cap
Oregon~$116,42712-month cap; 2-week advance notice required before employment begins
Tennessee$70,000New via HB 1034, effective July 1, 2026
VirginiaTied to avg. weekly wage of overtime-eligible workersVoids for low-wage/overtime-eligible workers
Washington (current)~$126,858 employees / ~$317,147 contractors2-week notice required; transitions to near-total ban June 2027

Other significant restrictions

Broadly enforceable, few restrictions

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.

Practical takeaway

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.