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Non-Compete Agreement Enforceability Checklist

State-by-state non-compete enforceability reference with maximum duration, geographic scope, consideration requirements, and 2026 legislative updates.

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Select the state where the employee works or where the agreement will be enforced.

2026 Federal Status

The FTC final rule banning most non-competes (issued April 2024) was vacated by federal courts in August 2024. As of 2026, there is no federal ban in effect. State law continues to govern non-compete enforceability.

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Introduction

Four states ban non-compete agreements entirely. Several others make them unenforceable unless the employee earns above a specific income threshold. In the remaining states, courts can void, rewrite, or enforce them based on reasonableness tests that vary by jurisdiction. Yet companies continue to use identical non-compete language across all 50 states in standard employment agreements, unaware that the clause is void in California the moment it is signed, requires a 14-day review period in Illinois, and must be accompanied by garden leave pay in Massachusetts. The Federal Trade Commission's 2024 regulatory history -- which produced a proposed nationwide ban that was subsequently vacated by federal courts -- demonstrates that non-compete law is actively evolving. This enforceability reference tool provides a state-by-state summary of current non-compete law so attorneys, HR professionals, and employees can assess the validity of any agreement before it becomes a dispute.

What This Calculator Does

This non-compete agreement enforceability reference tool provides state-by-state analysis covering: enforceability status, maximum permitted duration, geographic scope requirements, income thresholds, consideration requirements, blue-pencil reformation availability, and key 2026 statutory or case law updates. It covers all 50 states and the District of Columbia with notes on current legislative trends.

The Formula

This is a reference tool. Non-compete enforceability is determined by state statute and case law, not a mathematical formula. Enforceability Score = sum of jurisdiction-specific compliance factors (duration, scope, consideration, income threshold, legitimate business interest).

Courts evaluate non-compete enforceability through a multi-factor reasonableness test. Duration must be no longer than necessary to protect legitimate business interests -- most enforceable agreements run 12 to 24 months. Geographic scope must be limited to areas where the employer actually does business or the employee actually worked. The restricted activity must be tailored to the employee's actual role. Adequate consideration (something of value beyond continued employment in most states) must support the agreement. And the employer must have a legitimate protectable interest such as trade secrets, customer relationships, or specialized training.

Step-by-Step Example

1

Select the governing state

Choose the state where the employee works and where enforcement would be sought. Note: choice-of-law clauses selecting a more favorable state are often ignored by courts protecting their own residents.

2

Check enforceability status and income threshold

Example -- Illinois: Non-competes enforceable only for employees earning above $75,000/year. Non-solicitation agreements: above $45,000/year. An employee earning $65,000 in Illinois has no enforceable non-compete regardless of what they signed.

3

Review duration and scope requirements

Example -- Washington State: Non-competes enforceable only for employees earning above $123,394 (2026 adjusted threshold). Must be disclosed before a job offer is accepted or at least 10 business days before employment begins. Duration presumptively unreasonable above 18 months.

4

Assess consideration and reformation availability

Example -- Massachusetts: Non-compete must be accompanied by garden leave pay equal to 50% of base salary during the restricted period, or other mutually agreed consideration. Courts will not reform overbroad Massachusetts non-competes -- they void them entirely.

Real-World Use Cases

Employment Agreement Drafting

An employment attorney in a national company drafting standard offer letters checks the enforceability tool for each state where employees will be hired. The California ban means no non-compete language is included for California employees. Illinois employees above $75,000 receive the full clause with a 14-day review period. Below-threshold Illinois employees receive a confidentiality agreement instead.

Employee Transition Planning

A software engineer earning $110,000 in Colorado considering a move to a competitor reviews their non-compete. Colorado's 2022 law restricts non-competes to employees earning at least $123,750 (2026 threshold). The employee earns above the threshold, making the clause potentially enforceable -- but the clause bars work within 100 miles of the Colorado office, and the new employer is based in Denver. Legal review is warranted before resigning.

Acquisition Due Diligence

A company acquiring a competitor reviews the non-competes signed by 12 key employees. The review reveals two California-based employees whose non-competes are void under Cal. Bus. and Prof. Code 16600, and three employees in states where the consideration was inadequate. The buyer negotiates new restrictive covenants as part of the deal close rather than inheriting unenforceable agreements.

Comparison

StateNon-Compete StatusIncome ThresholdMax DurationBlue-Pencil?
CaliforniaBanned (Bus. & Prof. Code 16600)N/AN/ANo -- void
MinnesotaBanned (2023 law)N/AN/ANo -- void
OklahomaBannedN/AN/ANo -- void
North DakotaBannedN/AN/ANo -- void
IllinoisEnforceable above $75,000/yr$75,00024 months typicalYes
ColoradoEnforceable above $123,750/yr (2026)$123,75012 months typicalYes
MassachusettsEnforceable with garden leave payN/A12 months typicalNo
WashingtonEnforceable above $123,394/yr (2026)$123,39418 months presumptive maxNo
TexasEnforceable (reasonableness test)None24 months typicalYes
FloridaEnforceable (employer-friendly)None24 months routine; 3+ yrs possibleYes (statutory)

Common Mistakes to Avoid

  • Assuming a signed non-compete is automatically enforceable. In California, Oklahoma, Minnesota, and North Dakota, the non-compete is void by statute regardless of the employee's signature or the choice-of-law provision. The signature does not confer enforceability.

  • Using identical non-compete language in employment agreements across all states. A clause valid in Texas may be void in California, unenforceable without income verification in Illinois, and require garden leave pay in Massachusetts to be valid. State-specific drafting is not optional for multi-state employers.

  • Relying on a choice-of-law provision to apply a more favorable state's law. Courts in protective states frequently decline to enforce choice-of-law provisions that circumvent their own non-compete statutes to protect their residents. A Texas choice-of-law clause in a California employee's agreement is likely unenforceable.

  • Drafting non-competes too broadly to maximize protection. Overbroad geographic scope, excessive duration, or activity restrictions broader than the employee's actual role invite court reformation or voiding. In states without blue-pencil authority, an overbroad clause is entirely void. Narrowly tailored agreements are more likely to be enforced.

Frequently Asked Questions

Accuracy and Disclaimer

Non-compete enforceability depends on state-specific statutes, case law, and the specific facts of the employment relationship. This tool provides general reference information based on laws and regulations current as of early 2026. Non-compete law is rapidly evolving through state legislation and federal regulatory activity. This tool does not constitute legal advice. Always consult a licensed employment attorney in the relevant jurisdiction before drafting, signing, or enforcing a non-compete agreement.

Conclusion

Non-compete enforceability is a threshold question that must be answered before any clause is drafted, signed, or enforced. Once enforceability is confirmed in the applicable jurisdiction, use our Consulting Rate Calculator if evaluating the financial impact of a restricted period on a departing consultant, or the Consulting Project Scope and Fee Estimator for structuring work that avoids the restricted activity scope entirely.