What Is Non-Compete Agreement?

Non-competes are highly variable in enforceability — they depend heavily on the state. California, North Dakota, Minnesota, and a few other states ban them entirely. In states where they are enforceable, courts look at whether the agreement is reasonable in duration (typically 6–24 months), geographic scope, and the interests it protects. The FTC proposed a rule to ban most non-competes nationwide, creating ongoing uncertainty. Non-solicitation agreements (prohibiting employees from recruiting colleagues or soliciting customers) are generally more enforceable than broad non-competes. Employees should understand what they're signing before accepting a job offer, and employers should ensure their agreements are actually enforceable in the relevant jurisdiction.

Many employees sign non-compete agreements without understanding that they may be unenforceable in their state — or that even an unenforceable agreement can discourage them from taking legitimate jobs. Employers who use overly broad non-competes may find them unenforceable when they need them most. An employment attorney can review what you have (or are being asked to sign) and advise on actual enforceability.