Is the FTC non-compete ban in effect?

No. The 2024 FTC rule was vacated by Ryan LLC v FTC (Aug 2024). State law governs.

Which states ban non-competes outright?

California, North Dakota, Oklahoma, Minnesota (banned for employment). Other states are evaluating bans.

How long can a non-compete last?

Most enforceable non-competes are 6-24 months. Beyond 24 months courts often strike them as overbroad.

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What if my non-compete is unreasonable?

Courts may 'blue pencil' (modify) to make reasonable, or strike entirely depending on state. Some states are no-modify states.

Does the rule apply to independent contractors?

Generally yes — most state laws cover both employees and contractors. California specifically extends bans to contractors.

Non-Compete Enforceability Checker

Non-competes vary radically by state — California, North Dakota, Oklahoma ban them entirely; many others enforce only if reasonable in scope, duration, and geography. This tool flags enforceability based on the 2026 state-by-state landscape.

State

Duration (months)

Geographic Scope

Consideration

State Law Landscape 2026

California, North Dakota, Oklahoma, and Minnesota ban employment non-competes outright. Washington, Oregon, Illinois, Massachusetts, Maryland, and Colorado limit them by income threshold. Texas, Pennsylvania, New York apply a reasonableness test. Florida, Georgia, Virginia, North Carolina are most permissive.

The Reasonableness Test

Courts in moderate/permissive states apply three-factor test: duration (typically 6-24 months allowed), geographic scope (limited to where employee actually worked), and scope of restricted activity (specific competing work, not entire industry). Overbroad in any factor risks invalidation.

FTC Non-Compete Rule Status

The FTC's 2024 rule banning most non-competes was vacated nationwide by a federal court in August 2024 (Ryan LLC v FTC). Non-competes remain governed by state law. State-by-state legislation continues to tighten — Washington and Illinois passed new wage-floor restrictions in 2024-2025.

Non-Compete Enforceability Checker: Wage Threshold States in 2026

Six states condition non-compete enforceability on minimum income. If you earn below the threshold, the agreement is unenforceable by statute regardless of reasonableness. (1) Washington — non-competes enforceable only for employees earning $123,394.17+ in 2026 (indexed annually per Washington L&I non-competition page). (2) Illinois — $75,000 minimum wage threshold under the Illinois Freedom to Work Act. (3) Massachusetts — non-competes void for non-exempt employees under the Massachusetts Noncompetition Agreement Act. (4) Maryland — non-competes void below $46,800 (twice federal minimum × 2,080 hours). (5) Oregon — non-competes enforceable only at $108,575+ for 2026 (indexed). (6) Colorado — non-competes for non-executive employees require $123,750 minimum compensation under the 2022 amendment. Check your state and your gross compensation first — most low-wage non-competes are dead on arrival without any case-by-case analysis. Updated 2026-06-19.

What Happens If My Employer Sues to Enforce an Unenforceable Non-Compete?

Three states have flipped the script: an employer that sues to enforce an overbroad or unenforceable non-compete can owe YOU damages. Colorado's 2022 statute awards $5,000 plus attorney fees to the employee for each violation. Washington awards actual damages plus $5,000 minimum plus fees per L&I rules. Massachusetts allows fee-shifting in employee favor when the suit is overbroad. Even in permissive states (FL, GA, VA), courts increasingly impose costs on employers that file overbroad complaints to intimidate departing employees. If you receive a cease-and-desist letter or get sued: document your role/duties, the geographic scope you actually worked, and your salary at signing. Consult a state-specific employment attorney before responding — most offer free 30-minute consultations and many accept fee-shifting cases on contingency.

Source: State non-compete statutes; Ryan LLC v FTC (N.D. Tex. 2024). Last updated: June 2026.