Explore the interactive map of current state noncompete laws and a searchable tracker of proposed noncompete reform bills in state legislatures across the country.
Nearly one in five workers in the United States are bound by a noncompete agreement preventing them from finding a new job or starting a business in their field when they leave their employer. Noncompetes are currently governed at the state level, and as a growing body of research shows that noncompetes suppress wages, reduce job mobility, and stifle innovation, states are moving rapidly to restrict them. Currently, four states ban the use of noncompetes entirely and 33 states plus DC restrict their use.
Explore the state map below to see where noncompete agreements are currently fully banned, where their enforceability is limited, and where they are allowed.
Current Noncompete Agreement Laws by State
The map above summarizes statutory restrictions placed on noncompetes in each state and sorts states into four broad categories. “Full ban” states do not allow any noncompetes in an employment context but may have exceptions for the dissolution of a partnership or the goodwill sale of a business. “Income ban” states use an income threshold to determine which employees may be subject to noncompetes and may or may not have additional restrictions. “Other restrictions” include any industry-specific bans, statutory limits to the scope of agreements, or any other limits on noncompetes short of a full ban that are not based on income. “No restrictions” states have no laws on the books defining when a noncompete is valid, except for undefined requirements that they are “reasonable” or in writing. Many states, including some states listed as “no restrictions,” have additional limits on noncompetes based solely on case law. These restrictions are not included in the map, as they may change subject to judicial reinterpretation. Some states have additional process requirements for a noncompete to be valid and enforceable, i.e., that an agreement must be in writing or an employee must have a certain number of days to review a noncompete before signing. Though it is important that workers have time to review any agreement they sign, these requirements do not restrict when a worker may be prevented from working or starting a business in their field and are therefore not included in the map.
Proposed State Noncompete Reform Bill Tracker
Momentum has grown behind state level noncompete reform in recent years. The table below summarizes the bills that have been introduced or seen action in state legislatures in 2024 which would restrict the use of noncompetes if enacted. It was updated as of October 2024.
The table sorts proposed bills into five broad categories:
- Complete or near complete bans, which would eliminate all noncompetes in an employment context within the state
- Income thresholds that prohibit noncompete agreements for workers making below a certain amount
- Healthcare industry bans that would eliminate noncompetes for certain types of healthcare workers (healthcare industry bans are in a separate category due to the high volume of healthcare specific legislation in state legislatures)
- Industry bans that would prohibit noncompetes for an entire category of worker (excluding the healthcare industry)
- Other bills, which may include changes or clarifications to the legal basis for a noncompete, the definition of a noncompete agreement, or steps an employer must take to enforce a noncompete, but do not exempt an entire class of workers from noncompete agreements.
Click on the top of each column to sort the list alphabetically.
