Non-Compete Enforceability Analyzer

It depends entirely on state law. California, North Dakota, Oklahoma, and Minnesota broadly prohibit employee non-competes. Most other states enforce them only if reasonable in scope, duration (often 6 months to 2 years), and geography, and if supported by consideration. The FTC issued a near-total ban in 2024 that has been blocked by federal courts pending appeal.

Narrow geographic scope, short duration (typically under 2 years), protection of legitimate interests (trade secrets, customer relationships, specialized training), separate consideration beyond at-will employment, and equal bargaining power. Overbroad agreements are often "blue-penciled" or struck down.

Non-solicitation agreements (not contacting customers or employees), confidentiality and trade secret agreements, garden leave (paid time off during the restriction period), and forfeiture-for-competition clauses (loss of unvested equity if competing). These are generally more enforceable than full non-competes.

Have an employment attorney review before you sign or accept a new job that may breach an existing one. Many states require employers to give advance notice of non-competes; some require a higher salary threshold. Litigation can be expensive ($25,000-$200,000+), so negotiated buyouts or carve-outs are often the practical answer.