Non-Compete Buyout 2027
Non-compete buyout: typically 50-100% of base salary × restriction years. Higher if narrow industry. FTC ban (April 2024) struck down 2024.
| Annual salary | — |
| Duration | — |
| Scope multiplier | — |
| Specialty multiplier | — |
| Base calculation | — |
| Fair buyout | — |
| Negotiation range | — |
Non-compete buyouts compensate employees for surrendering their right to work in the same field. The FTC's April 2024 ban on non-competes was struck down by federal courts in August 2024 — state laws now govern (California, North Dakota, Oklahoma prohibit; most limit duration to 1-2 years).
Formula Considerations
Base = 75% of annual salary × years restricted. Adjusted by: scope multiplier (narrow region < state < national < global), specialty (broad skills < narrow expert). Higher scope × specialty = harder to find work = higher buyout warranted.
State Law Variations
California (Section 16600): non-competes void (with very narrow exceptions). North Dakota, Oklahoma: similar. Massachusetts: now requires garden leave (50% salary during restriction). New York: 1-year max common. Florida: enforceable 6 months-2 years if reasonable.
FTC Ban Status 2024-2026
April 2024 FTC final rule banning non-competes was set to take effect September 2024. Northern District of Texas struck down nationally in August 2024 (Ryan, LLC v. FTC). FTC appealed — uncertain outcome. Continue using state law as default through 2026+.
Last updated May 2026. Sources: FTC Non-Compete Rule.