Nearly 1 in 5 workers nationwide are bound by a noncompete agreement, but states are changing their laws to add more restrictions or outright banning noncompete agreements.

The Economic Innovation Group organized states by their laws governing noncompetes for all industries. The categories are full ban, income restrictions, other restrictions or no restrictions.

Full ban

Income restrictions

Colorado: In 2022, noncompete agreements signed are enforceable only against highly compensated workers, as defined annually by the Division of Labor Standards and Statistics in the Department of Labor and Employment.

District of Columbia: Noncompete clauses are banned for employees making less than $150,000 in 2022 dollars, adjusted annually for inflation.

Illinois: On Jan. 1, 2022, a state law went into effect limiting the use of noncompetes in the state, including that employees must work for an employer for at least two years after signing the noncompete or receive other benefits to support a noncompete.

Maine: As of September 2019, employers in Maine may not enter into noncompete agreements with workers earning at or below 400% of the federal poverty level.

Maryland: Noncompetes are voided for employees making $15 an hour or the threshold to be equal to 150 percent of the state’s minimum wage.

New Hampshire: Noncompetes are prohibited for employees earning 200% or less of the minimum wage or tipped minimum wage.

Oregon: Noncompetes in Oregon are enforceable only if the employee’s annual gross compensation exceeds $100,533 in 2021 dollars, adjusted annually for inflation.

Rhode Island: Noncompetes are unenforceable against workers earning 250% or less of the federal poverty level, and against minors and short-term student interns or employees.

Virginia: Noncompetes are banned for workers whose average weekly wage is below the average weekly wage for the commonwealth.

Washington: Noncompetes are not enforceable for workers earning below an inflation-adjusted salary threshold. Agreements also lasting longer than 18 months are presumed unreasonable.

Other restrictions

Alabama: Time restrictions of up to two years are presumed reasonable.

Arizona: Arizona law bars broadcast employers from requiring their employees to sign noncompetes, but there is no statute governing noncompete laws generally.

Arkansas: In 2015, the state passed time restrictions on noncompetes of up to two years. Some agreements may be unrestricted in geographic scope.

Connecticut: Restrictions to noncompetes apply to workers in the healthcare, home care, and broadcasting industries, but has no statute governing noncompetes generally.

Delaware: Delaware law voids noncompetes that prevent a physician from practicing within a set time or geographic range.

Florida: Noncompetes must be no broader than “reasonably necessary” to protect a legitimate business interest and time limits of six months or less are presumed reasonable.

Georgia: Noncompetes are allowed for employees who solicit customers, hold management roles, or serve as key employees or professionals. Agreements with durations up to two years are allowed.

Hawaii: Noncompetes must be no broader than “reasonably necessary” to protect a legitimate business interest, and they cannot substantially lessen competition or create a monopoly.

Idaho: Noncompetes may apply only to key employees. There is a presumption that the top 5% of earners qualify. Agreements may not exceed 18 months without additional consideration and must be no broader than necessary to protect a business interest.

Indiana: Enforcement of noncompetes for physicians is restricted, and what makes it enforceable has been left to the courts.

Iowa: Noncompetes for mental health professionals and healthcare workers contracted through staffing agencies are limited.

Kentucky: Healthcare staffing agencies are prohibited from using noncompetes against temporary direct care staff.

Louisiana: Noncompetes must be limited to two years and must explicitly name the geographic areas where the employer conducts business.

Massachusetts: Noncompetes must not exceed 12 months and must include a garden leave clause. They are not enforceable against employees laid off or terminated without cause.

Missouri: Noncompetes must protect either trade secrets or customer relationships and last less than a year.

Montana: Reasonable noncompetes that protect a legitimate business interest and do not fully restrain an employee’s professional activity are allowed.

Nevada: Noncompetes may not apply to hourly workers.

New Jersey: Noncompetes for domestic workers were banned in July, but there is no general statute.

New Mexico: Noncompetes are voided for certain healthcare practitioners.

New York: Noncompetes are restricted for broadcast employees. For other workers, there is no general statute.

Pennsylvania: Starting in 2025, noncompetes will be restricted for healthcare practitioners. For other workers, there is no statute, and enforceability is determined by the courts.

South Dakota: Noncompetes must be limited to two years in duration.

Tennessee: Tennessee regulates noncompetes for healthcare providers, but not generally.

Texas: Physician noncompete agreements must include a buyout and allow continued access to patients seen in the past year.

Utah: Noncompetes signed after May 2016 must be limited to one year in duration.

Vermont: Vermont bars cosmetology and barbering schools from requiring noncompetes with students.

Wyoming: Starting July 1, all physician noncompetes are void.

No restrictions