Non-Compete Buyout Calculator
Non-competes restrict employees from working at competitors post-employment. Some agreements have buyout provisions — pay employer to waive. FTC 2024 banned most non-competes (litigation pending).
| Current salary | — |
| Restricted pay (during NC period) | — |
| Buyout cost | — |
| New job income (during NC period) | — |
| Net profit (new - buyout - waited pay) | — |
Non-compete agreements restrict working at competitors for a specified period post-employment. Some allow buyouts: pay employer to waive enforcement. FTC banned most non-competes in 2024 (litigation ongoing as of 2026); state law (CA, ND, OK, MN) already void them.
FTC Non-Compete Ban 2024
FTC rule (effective Sep 2024) banned most non-competes nationally. Lawsuit-stayed in some jurisdictions. Status varies — check current legal landscape. Even where banned, garden leave and non-solicitation agreements still enforceable.
State Variations
California (Bus & Prof Code §16600): non-competes void since 1872. North Dakota, Oklahoma, Minnesota similar. NY, FL, TX enforce 'reasonable' non-competes. Massachusetts: garden leave + paid restricted period required.
Buyout Clauses
Some agreements explicitly allow buyout (typically 50-200% of salary). Others require renegotiation. Always have RE attorney review before signing — terms often negotiable at hiring more than at separation.
Garden Leave vs Buyout
Garden leave: employer pays full salary during restricted period (~6-12 months). Better than unpaid non-compete. Common in finance, executive contracts. Employee can negotiate garden leave in lieu of buyout.
Last updated May 2026. Sources: FTC Non-Compete Rule, Cornell §16600 CA.