Non-Compete Agreement Buyout Calculator
Non-compete agreements restrict where you can work after leaving a job. If your contract is enforceable, you may need to buy your way out — typically 50-100% of base salary for the restriction period. Calculate the cost and weigh against a new job offer.
State Enforcement Varies Dramatically
California, North Dakota, Oklahoma, and Minnesota effectively ban non-competes for most workers. Texas, Florida, New York heavily enforce with reasonable scope. Illinois, Ohio, New Jersey enforce moderately. Most states require: legitimate business interest, reasonable geographic scope, reasonable duration (12 months typical max), and consideration (something of value given when signing).
FTC Final Rule Status
FTC's April 2024 final rule banned new non-competes nationwide (effective Sept 2024) but is under significant litigation. Texas federal court (Ryan v FTC) blocked the rule for senior executives only as of August 2024. Final outcome uncertain — verify current status before relying on FTC protection.
Buyout Strategies
Negotiation tactics: (1) Argue the agreement is overbroad — geography too wide, duration too long, scope too restrictive. (2) Offer a narrowed waiver instead of full buyout (e.g., agree not to call clients but accept the new role). (3) Wait for FTC rule clarification. (4) New employer may indemnify you against the old employer's litigation — common in finance and tech.
Source: FTC Non-Compete Rule (16 CFR Part 910), Ryan v. FTC litigation, state non-compete statutes. Last updated: May 2026.