{"id":357766,"date":"2016-04-04T10:45:26","date_gmt":"2016-04-04T15:45:26","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/hiring-process\/non-competition-agreements-overview.html"},"modified":"2026-03-17T15:06:21","modified_gmt":"2026-03-17T20:06:21","slug":"non-competition-agreements-overview","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/hiring-process\/non-competition-agreements-overview.html","title":{"rendered":"When Are Non-Compete Agreements Enforceable?"},"content":{"rendered":"\n
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When Are Non-Compete Agreements Enforceable?<\/h1>\n\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Non-compete agreement<\/span> enforceability<\/span> depends on state law<\/span> and whether the agreement is reasonable. After a federal ban was struck down in 2024, some states prohibit non-competes entirely, while others set salary thresholds. Most enforce them only if they protect legitimate business interests<\/span> through reasonable time limits and geographic restrictions.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

A non-competition agreement<\/span> is a contract that restricts an employee from working for competing businesses or from starting the same business after leaving their current job. Its enforceability<\/span> depends on the state where you live. A federal effort to ban most non-competes nationwide was struck down in 2024, leaving state law<\/span> to continue controlling enforceability<\/span>.<\/p>\n

Signing a non-compete agreement<\/span> can feel unsettling, especially if you are not sure what it covers. These agreements can limit where you work, what clients you can take with you, or what kind of work you can do after leaving a job.<\/p>\n

In this article, you\u2019ll learn about what non-compete agreements<\/span> are, how federal and state laws<\/span> treat them, and what you can do if an employer asks you to sign one. If you have concerns about a non-compete agreement<\/span>, consider speaking with an employment law<\/span> attorney<\/u><\/a> near you for legal advice<\/span>. They can review the agreement and help you understand your options.<\/p>\n

What Is a Non-Competition Agreement<\/span>?<\/strong><\/h2>\n

A non-competition agreement<\/span>, also known as a non-compete contract or NCA, is a type of employment contract<\/span> between an employer and an employee. It restricts you from working for competing businesses or starting a similar company for a certain period of time<\/span> or within a specific location after you leave your job. Employers use NCAs to protect sensitive business information, trade secrets<\/span>, and customer relationships<\/span> built during your tenure.<\/p>\n

Non-competes are often confused with two other types of restrictive covenants<\/span> that appear in employment agreements<\/span>:<\/p>\n