Complete List of States with Non-Compete Bans and Restrictions in 2024 | Updated Laws and Trends
Non-compete agreements have become a key battleground in the fight for worker rights and job mobility. As industries adapt to changing labor markets, more states are stepping in to limit—or even completely ban—these agreements to promote worker mobility.
The push to ban non-compete agreements nationwide gained momentum when the Federal Trade Commission (FTC) proposed a rule to eliminate most of them. Although a federal court blocked this rule, many states have taken action on their own, either banning or heavily restricting non-competes, especially for workers in lower-wage or high-turnover industries.
Here’s a comprehensive list of states with non-compete ban or restrictions as of October 2024:
Complete List of States that Have Fully Banned Non-Competes (2024)
California—Broadly bans non-competes, no matter where the agreement was signed. Exceptions apply for the sale of a business.
North Dakota—Prohibits most non-competes with limited exceptions, such as for the sale of a business.
Oklahoma—Enforces a strict ban on non-competes, with some exceptions related to the sale of a business or partnerships.
Minnesota—As of July 1, 2023, non-competes are prohibited in almost all circumstances, with limited exceptions for the sale of a business. However, agreements entered into before then may still be enforceable under certain circumstances.
States with Non-Compete Restrictions (2024)
Colorado–Enforceable only for highly compensated workers earning more than $112,500 and must be limited to the protection of trade secrets or client relationships.
Washington State–Restricted for employees earning less than $116,593 per year and independent contractors earning less than $291,482. Employers must provide notice of the non-compete before employment begins.
Oregon—Limited to employees earning at least $108,576 per year and can’t exceed 12 months. Employers must provide notice of the non-compete before employment begins.
Illinois—Prohibited for workers earning less than $75,000, with the threshold increasing periodically. Non-competes are also restricted for hourly workers and mandates notice prior to beginning employment.
Massachusetts—Requires non-competes to include “garden leave" (compensation during the non-compete period) and restricts agreements to 12 months). Employees must earn at least 50% of the state’s average wage for the agreements to be enforceable. Non-competes for lower-wage workers are also heavily restricted.
Nevada—Not enforced if an employee is laid off or terminated due to downsizing. The state also limits non-competes that restrict future employment in the same industry.
New York—While not a full ban, courts heavily scrutinize non-competes and only enforce them when they are reasonable in scope, duration, and necessary to protect legitimate business interests.
Rhode Island: Not enforceable against low-wage employees and certain other categories of workers, such as minors or interns.
Maine: Prohibited for employees earning at or below 400% of the federal poverty level.
Maryland: Banned for employees earning less than $15 per hour or $31,200 annually. They are still legal for higher-wage earners but must meet legal standards for reasonableness.
Virginia: Prohibited for low-wage workers, defined as employees earning less than approximately $70,000 annually (or an average weekly wage of 50 times the minimum wage). The law also bars them for independent contractors who earn less than the low-wage threshold.
Hawaii: Prohibited for employees working in technology-related fields.
Key Takeaway
Stay informed about your state's laws. Non-compete agreements are facing growing scrutiny, with more states banning or restricting them. The trend is opening doors for many job seekers—let’s hope it continues!
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