State-by-State Non-Compete & Non-Solicit Reference Guide

Agent Agreement (Lenient States)	Agent Agreement (Strict States)	Are Employee Non-Solicits Allowed?	Are Customer Non-Solicits Allowed?
Alaska	California	Alaska yes, California generally no	Alaska yes, California generally no
Kansas	Minnesota	Kansas yes, Minnesota generally no	Kansas yes, Minnesota yes
Michigan	North Dakota	Michigan yes, North Dakota yes	Michigan yes, North Dakota generally no
Mississippi	Oklahoma	Mississippi yes, Oklahoma yes	Mississippi yes, Oklahoma generally yes
Nebraska	Alabama	Nebraska yes, Alabama generally yes	Nebraska yes, Alabama generally yes
North Carolina	Arizona	North Carolina yes, Arizona yes	North Carolina yes, Arizona yes
Ohio	Arkansas	Ohio yes, Arkansas yes	Ohio yes, Arkansas yes
South Carolina	Colorado	South Carolina yes, Colorado yes	South Carolina yes, Colorado generally yes
West Virginia	Connecticut	West Virginia yes, Connecticut yes	West Virginia yes, Connecticut yes
Wisconsin	Delaware	Wisconsin yes, Delaware yes	Wisconsin yes, Delaware yes
Wyoming	Florida	Wyoming yes, Florida yes	Wyoming yes, Florida generally yes
	Georgia	Yes	Yes
	Hawaii	Generally Yes	Yes
	Idaho	Yes	Yes
	Illinois	Generally Yes	Generally Yes
	Indiana	Generally Yes	Yes
	Iowa	Yes	Yes
	Kentucky	Yes	Yes
	Louisiana	Yes	Generally Yes
	Maine	Yes	Yes
	Maryland	Yes	Yes
	Massachusetts	Yes	Yes
	Missouri	Generally Yes	Generally Yes
	Montana	Yes	Generally Yes
	Nevada	Yes	Generally Yes
	New Hampshire	Yes	Yes
	New Jersey	Yes	Yes
	New Mexico	Yes	Yes
	New York	Yes	Yes
	Oregon	Yes	Yes
	Pennsylvania	Yes	Yes
	Rhode Island	Yes	Generally Yes
	South Dakota	Yes	Yes
	Tennessee	Yes	Yes
	Texas	Yes	Yes
	Utah	Yes	Yes
	Vermont	Yes	Yes
	Virginia	Yes	Yes
	Washington	Yes	Generally Yes
	Washington D.C.	Yes	Yes

California

Non-Competes:

• Bus. & Prof. Code §§ 16600-16600.5 (making the inclusion of noncompete clauses in employment contracts an unlawful restraint on trade and voiding any contract, regardless of where or when it was signed, that restrains a person from engaging in a lawful profession, trade, or business – effective January 1, 2024).
• Exceptions: Cal. Bus. & Prof. Code § 16601 (sale of goodwill or sale of business) Cal. Bus. & Prof. Code § 16602 (dissolution of a partnership or dissociation of partner from a partnership) Cal. Bus. & Prof. Code § 16602.5 (dissolution or termination of limited liability company).

Employee Non-Solicits:

• Generally no, with some exceptions, but a seller of a business can agree with the purchaser not to solicit employees of the business, but only if the agreement is limited to employees of the business at the time it was sold. However, the effect of Cal. Bus. & Prof. Code § 16600.5 (rendering unenforceable any contract that is void under § 16600) remains unclear as of now.

Customer Non-Solicits:

• Generally no, but there may be a trade secret exception. However, the effect of Cal. Bus. & Prof. Code § 16600.5 (rendering unenforceable any contract that is void under § 16600) remains unclear as of now.

 

Minnesota

Non-Competes:

• No (for agreements dated July 1, 2024 or after), except in the context of the sale or dissolution of a business.

Employee Non-Solicits:

• Effective July 1, 2024, “service providers” are prohibited from restricting, restraining, or prohibiting a customer from directly or indirectly soliciting or hiring their employee. “Service providers” are any partnership, association, corporation, business, trust, or group of people acting directly or indirectly as an employer or manager for work contracted or requested by a customer. “Employee” is defined as including independent contractors, but excludes certain software developers and related services. Employers with existing contracts that violate the law must provide a notice to employees that the provision is void and unenforceable. Minn. Stat. § 181.9881, Subd. 1-2. Does not apply to workers providing professional business consulting for computer software development and related services who are seeking employment through a service provider with the knowledge and intention of being considered for a permanent position of employment with the customer as their employer at a later date. Minn. Stat. § 181.9881, Subd. 3.

North Dakota

Non-Competes:

• No; only in connection with the sale or dissolution of a business.

 

• Customer Non-Solicits:

 

• No, only in connection with the sale or dissolution of a business.

Oklahoma

• Non-Competes:

 

 

• Customer Non-Solicits:

 

• Yes, if limited to direct solicitation of established customers Okla. Stat. tit. 15, §§ 219A – 219B.

 

 

 

Alabama

• Non-Competes:

 

• Yes, except certain professionals. Restraints of two years or less are presumed to be reasonable. Definition of “professionals” has been left up to the courts although precedent includes physicians, therapists, lawyers, accountants.

 

• Employee Non-Solicits:

 

• Yes, but only when the restriction prohibits the solicitation or hiring of employees who hold positions that are “uniquely essential” to the management, organization, or service of the business.

 

• Customer Non-Solicits:

 

• Yes, restraints of 18 months or for as long as post-separation consideration is paid for such agreement, whichever is greater, are presumed to be reasonable. Ala. Code § 8‑1‑190 et seq. (General).

Arizona

• Non-Competes:

 

• Yes, but certain exceptions for broadcasting employees.

Arkansas

• Non-Competes:

 

• Time restrictions of up to two years are presumptively reasonable, and in some cases, non-competes may be unrestricted in geographic scope

Colorado

• Non-Competes:

 

• Yes, but only in limited circumstances, including for highly compensated employees and certain professionals, the protection of trade secrets, and the sale of a business. Noncompete agreements signed after August 2022 are only enforceable against highly compensated workers, as defined annually by the Division of Labor Standards and Statistics in the Department of Labor and Employment. Workers must meet the definition of highly compensated at both the time of signing and the time of execution. Agreements for highly compensated workers must protect trade secrets and be “no broader than is reasonably necessary” to protect legitimate business interests. Wage threshold increases annually with inflation. Threshold for 2025 is $127,091 per year.

 

• For prospective workers, employers must provide notice of any non-competes/non-solicits before the worker accepts an offer of employment. For current workers, employers must provide notice at least two weeks before the earlier of (1) the effective date of the restrictive covenant or (2) the effective date of the additional consideration to be provided.

 

• Standards for non-compete:

 

• Agreements before August 10, 2022 must meet statutory exception (executive or management employees and professional staff or protect trade secrets or recover cost of training); and be reasonable and narrowly-tailored.

 

• Agreements on or after August 10, 2022: no broader than reasonably necessary to protect trade secrets and limits on venue and choice of law. Notice of the noncompete and its terms (in separate document “in the language in which the worker and employer communicate about . . . performance” accompanied by the noncompete) must be received by prospective employees before they accept offer of employment and by existing employees at least fourteen days before earlier of the effective date of the noncompete or “the effective date of any additional compensation or change in the terms or conditions of employment that provides consideration for the covenant.” Notice must “in clear and conspicuous terms” identify the noncompete by name, “[d]irect[] the worker to the specific sections or paragraphs” containing it, and “state that the agreement contains a covenant not to compete that could restrict the workers’ options for subsequent employment following their separation from the employer.” Must be “signed by the worker.”

 

• Prohibition on venue/choice-of-law: For non-competes entered into after August 10, 2022, there are prohibitions on foreign venue/choice of law. For non-competes entered into before August 10, 2022, no prohibitions unless enforcement would be contrary to public policy. For Non-Compete Agreements Entered Into Before August 10, 2022: Another state’s choice-of-law provision may govern, unless contrary to public law. For Non-Compete Agreements Entered Into On or After August 10, 2022, if the worker resided or worked in Colorado at the time of termination, the law prohibits requiring the worker to adjudicate outside Colorado and mandates applying Colorado law to determine the enforceability of the covenant. This is true even if the agreement includes another state’s choice-of-law provision, as the statute overrides conflicting contractual terms. If the worker resided or worked in a state outside of Colorado, the Colorado statute does not apply regardless of the agreement’s date. That state’s choice-of-law provision will likely govern.

 

• Customer Non-Solicits:

 

• Yes, if the employee bound by the customer non-solicit makes at least 60% of the threshold amount for highly compensated employees (which is adjusted annually by Division of Labor Standards and Statistics in the Department of Labor and Employment). For 2025 that would mean a threshold of $76,254.60 to enforce customer non-solicits.

Connecticut

• Non-Competes:

 

• Yes, except certain professionals. Limited non-competes for physicians, physician assistants, and advanced practice registered nurses.

Delaware

• Non-Competes:

 

• Yes, except certain professionals (physicians).

Florida

• Non-Competes:

 

• Yes, except certain professionals (medical specialists, mediators).

 

• Customer Non-Solicits:

 

• Yes, with limitations (must be reasonable as to time, area, and line of business, existence of one or more eligible business interests as defined in Section 542.335 of Florida Statutes, etc.)

Georgia

• Non-Competes:

 

• Yes, but ability to enforce restriction varies based on when the agreement was signed; on or after 5/11/11 is much easier to enforce.

Hawaii

• Non-Competes:

 

• Yes, but certain exceptions. Non-compete agreements must be no broader than “reasonably necessary” to protect a legitimate business interest. The noncompete may not substantially lessen competition or create a monopoly in the state.

 

• Employee Non-Solicits:

 

• Yes, except for employees in the information technology sector.

 

Idaho

• Non-Competes:

 

• Non-compete agreements are allowable as to “key employees” and “key independent contractors.” There is a rebuttable presumption that an employee in the highest-paid five percent of the employer’s employees is a key employee. Non-compete agreements may not exceed 18 months in duration without additional consideration. The non-compete must be no broader than reasonably necessary to protect a legitimate business interest.

Illinois

• Non-Competes:

 

• Yes, subject to income-based restrictions and for certain professionals. The statute, 820 ILCS 90/1 et seq,, prohibits non-compete and non-solicits below certain income levels, requires certain notice language, and requires 2 years of continued employment for enforceability absent additional consideration.

 

• For agreements pre-January 1, 2022: Legitimate business interests are based on the totality of the facts and circumstances of the case. Trade secrets, confidential information, and near permanent business relationships are factors.

 

• For agreements entered on or after January 1, 2022: “the employee’s exposure to the employer’s customer relationships or other employees, the near permanence of customer relationships, the employee’s acquisition, use, or knowledge of confidential information through the employee’s employment, the time restrictions, the place restrictions, and the scope of the activity restrictions.” The bill is also express that “[n]o factor caries any more weight than any other” and that the “factors are only nonconclusive aids in determining the employer’s legitimate business interest, which in turn is but one component in the 3-prong rule of reason, grounded in the totality of the circumstances.”

 

• Employee Non-Solicits:

 

• Yes, subject to income-based restrictions; the offer of employment alone is no longer adequate consideration. Effective January 1, 2025, non-solicitation agreements with a person employed in construction are void and illegal. See 820 ILCS 90/10(e) (eff. 1/1/25) Effective January 1, 2025, non-solicitation agreements entered into after January 1, 2025, are unenforceable if they are likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services from a mental health professional licensed in IL. See 820 ILCS 90/10(e) (eff. 1/1/25).

 

• Customer Non-Solicits:

 

• Yes, subject to income-based restrictions; the offer of employment alone is no longer adequate consideration. Effective January 1, 2025, non-solicitation agreements entered into after January 1, 2025, are unenforceable if it is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services from a mental health professional licensed in IL. See 820 ILCS 90/10(e) (eff. 1/1/25).

Indiana

• Non-Competes:

 

• Indiana has laws restricting the enforcement of non-competes against physicians but does not have a statute governing non-competes generally. Whether a non-compete agreement is “reasonable” and therefore enforceable is left up to the courts.

 

• Employee Non-Solicits:

 

• Yes, but limited to employees with competitively-valuable information or other protectable interest.

Iowa

• Non-Competes:

 

• Yes, but exceptions for health care and mental health professionals.

Kentucky

• Non-Competes:

 

• Yes, except certain professionals. Kentucky law bars healthcare services agencies from using non-competes against their temporary direct care staff, but the state does not have a statute governing non-competes generally. Whether a non-compete agreement is “reasonable” and therefore enforceable is left up to the courts.

Louisiana

• Customer Non-Solicits:

 

• Yes, if limited to specified parishes or municipalities.

Maine

• Non-Competes:

 

• Yes, with exceptions for certain professionals and those earning wages at or below 400% of the federal poverty level. Also, non-competes cannot be enforced unless employee is employed at least one year or until 6 months after signing agreement, whichever is longer.

 

 

Maryland

• Non-Competes:

 

• Yes, subject to certain wage thresholds and exclusions for certain positions. Employers may not enforce non-competes against:

 

• Workers earning equal to or less than 150% of the state minimum wage.

 

• Workers in positions that require the employee to be licensed under the Health Occupation article, who provide direct patient care, and who earn equal to or less than $350,000 in total annual compensation (for agreements entered into on or after July 1, 2024).

 

• An employee licensed as a veterinary practitioner or veterinary technician (for agreements entered into on or after July 1, 2024).

Massachusetts

• Non-Competes:

 

• Yes for agreements made on or after October 1, 2018, with exceptions for certain professional industries, nonexempt employees, students, employees terminated without cause or laid off, and employees aged 18 or younger. There is no statute of general applicability for agreements dated prior to October 1, 2018; agreements entered into prior to that date are governed by common law. Non-compete agreements may not exceed 12 months in duration and must include a garden leave clause. Agreements must be “no broader than necessary” to protect a legitimate business interest.

Missouri

• Employee Non-Solicits:

 

• Yes, employee non-solicits are presumed enforceable if 2 years or less.

 

• Customer Non-Solicits:

 

• Yes, customer non-solicits are presumed enforceable if 5 years or less.

Montana

• Non-Competes:

 

• Yes, unless it fully restrains an employee from exercising a lawful profession, trade, or business of any kind. Additionally, there are exceptions for certain health care providers such as psychiatrists, psychologists, social workers, professional counselors, addition counselors, marriage and family therapists, and behavioral health peer support specialists.

 

• Customer Non-Solicits:

 

• Exceptions for certain health care providers such as psychiatrists, psychologists, social workers, professional counselors, addition counselors, marriage and family therapists, and behavioral health peer support specialists (same exceptions as with employee non-competes) Mont. Code Ann. § 28-2-724 (Health Care Providers; effective 5/8/23).

Nevada

• Non-Competes:

 

• Yes, except as to hourly employees.

 

• Customer Non-Solicits:

 

• Yes, with some exceptions for customer choice. Cannot restrict employee from providing service to customer/client if (a) customer/client was not solicited; (b) customer/client voluntarily chose to leave or seek services from employee; and (c) employee otherwise complies with time, geographical area, and scope of noncompete.

New Hampshire

• Non-Competes:

 

• Yes, except for low-wage employees (employees who earn an hourly rate less than or equal to 200% of the federal minimum wage or tipped minimum wage, whichever applies) and some professionals.

New Jersey

• Non-Competes:

 

• Yes, except for certain professionals (domestic workers who work at least five hours a month). Whether a non-compete agreement is “reasonable” and therefore enforceable is left up to the courts.

New Mexico

• Non-Competes:

 

• Yes, except certain professionals: healthcare practitioners executing non-compete agreement after July 1, 2015.

Oregon

• Non-Competes:

 

• Noncompete must be provided at least two weeks before employment or with a bona fide advancement; employee is in an executive, administrative, or professional role and meets minimum compensation threshold; restricted in time or space; application of restriction should afford only a fair protection of the employer’s interests; must not interfere with public interest. As of January 1, 2016, non-competes are limited to 18 months. [Qualifying garden leave clauses are enforceable.]. Effective January 1, 2020, a signed, written copy of the employee’s noncompete must be sent within 30 days following termination of employment.

 

• Non-competes entered on or after January 1, 2022, cannot be longer than 12 months, and employees subject to them must have “annual gross salary and commissions” exceeding $116,427 (adjusted annually for inflation); failure to satisfy the statutory requirements renders the noncompete void.

Pennsylvania

• Non-Competes:

 

• Yes, except for certain professionals. Whether a non-compete agreement is “reasonable” and therefore enforceable is left up to the courts.

Rhode Island

• Non-Competes:

 

• Yes, with exceptions for certain professionals, non-exempt employees, certain undergraduate and graduate students, employees under the age of 18, and low-wage employees whose average annual earnings are up to 250% of the federal poverty level for individuals.

 

• Customer Non-Solicits:

 

• Yes, but agreements with APRNs may not prohibit the right of the APRN to solicit or seek to establish a professional relationship with any current patient of the employer. (R.I. Gen. Laws § 5-34-50(b)(3)).

South Dakota

• Non-Competes:

 

• Yes, except for some agreements with health care practitioners (new, effective July 1, 2023). Non-compete agreements in South Dakota are limited to two years in duration.

Tennessee

• Non-Competes:

 

• Yes, with an exception to some health care providers who sell their practice.

 

Texas

• Non-Competes:

 

• Yes, with some limitations for physicians.

Utah

• Non-Competes:

 

• Yes, but certain exceptions for broadcasting employees. Non-competes signed after May 2016 are limited to one year in duration.

Vermont

• Non-Competes:

 

• Yes, with exceptions for certain barbers and cosmetologists.

Virginia

• Non-Competes:

 

• Yes, subject to income-based restrictions (low-wage workers). Non-competes are banned for workers whose average weekly wage is below the average weekly wage for the commonwealth, excluding workers whose earnings come predominantly from commissions or bonuses.

Washington

• Non-Competes:

 

• Non-competes are not enforceable for workers earning below an inflation-adjusted salary threshold as adjusted by the Department of Labor & Industries for inflation (for 2025 the minimum threshold is $123,394.17 for employees and $308,485.43 for independent contractors). Agreements lasting longer than 18 months are presumed unreasonable. Non-competes cannot prohibit moonlighting for workers earning less than twice the state minimum wage. Non-competes for employees who are laid off are void unless they are paid their base salary less any new earnings for the period of the agreement. Provisions of the state’s non-compete law protecting workers must be liberally construed and that exceptions must be narrowly construed. Employers must disclose the terms of the non-compete by the time of the initial oral or written acceptance of an offer.

 

• Customer Non-Solicits:

 

• Yes, but covenants that directly or indirectly prohibit the acceptance or transaction of business with a current customer are deemed noncompete covenants and must conform to the special requirements for non-competes.

Washington D.C.

• Non-Competes:
  • Yes, but only for “highly compensated employees” (currently $257,000 for medical specialists and $154,200 for most other employees) and assuming compliance with statutory notice requirements.

 

• Effective October 1, 2022 (not retroactive) and applicable to agreements, policies, and procedures: If employee is based in D.C. and spends no more than 1/2 time in any other state or not based in D.C. but spends more than 1/2 of their time in D.C., they must earn at least $150,000 ($250,000 for physicians), unless they are casual babysitters and government workers. Wage thresholds increase annually starting 2024 (to $154,200 and $257,000 in 2024; the $257,000 threshold is for medical specialists) and apply to certain in-term non-competes (certain anti moonlighting restrictions). Duration of non-competes are limited to 365 days. For new employees, the noncompete must be provided at least 14 calendar days before commencement of employment. For existing employees, the non-compete must be provided at least 14 calendar days before the agreement must be signed (i.e., so employee has 14 days to review). Specific notices must be provided at certain times. (Provisions that provide a long-term incentive are not covered.)