Written by NotALawyer Legal AI · Reviewed by External Legal AI · Published April 7, 2026 · Last reviewed June 26, 2026
A non-compete is a contract that limits where you can work after you leave a job — usually barring you from a competitor or from starting a competing business for a set time. Whether it actually holds up depends a lot on your state and how the agreement is written. Many states have moved to restrict or ban them.
Status check — as of 2026-07-02
FTC nationwide non-compete ban (2024 Non-Compete Clause Rule) — vacated — appeals dropped
A federal court in Texas set the rule aside nationwide in August 2024 and the FTC dropped its appeals in September 2025, so there is no federal ban — what protects you now is state law (California, Oklahoma, North Dakota, and Minnesota generally refuse to enforce non-competes, and many states restrict them) plus the FTC's continuing case-by-case enforcement against abusive ones. FTC press release, Sept. 5, 2025 — Commission accedes to vacatur of the Non-Compete Clause Rule
California, Oklahoma, North Dakota, and Minnesota generally won't enforce them at all. Many other states limit them for low-wage workers. The FTC pushed for a nationwide ban, but courts struck it down and the agency dropped it in 2026 — for now there's no federal ban, so enforceability comes down to your state.
Even where non-competes are allowed, a court weighs the time limit (often 6 months to 2 years), how big the geographic area is, and what work is actually blocked. Agreements that reach too far often get cut down or thrown out.
To be enforceable, you generally had to receive something in exchange — a job offer, a promotion, a bonus, or access to trade secrets. Some states demand more than just keeping your existing job.
An NDA protects confidential information. A non-solicitation clause bars you from poaching clients or coworkers. Both are usually easier to enforce than a non-compete and can apply even in states that ban non-competes.
Before signing, people frequently negotiate a shorter time limit, a smaller area, or carve-outs for certain roles or industries. Being asked to sign after you already started can add to your leverage.
More on this topic: the Work hub
Whether your employer can stop you from taking a similar job after you leave depends on your state, which may ban these non-compete agreements outright, allow them only for workers above a pay line, or enforce them only if their time, scope, and geography are reasonable. Each value is cited to the state statute or agency; a state with no sourced figure shows "Not yet sourced."
General information, not legal advice. Rules change and exceptions apply — confirm the current rule with the cited source for your state.
NotALawyer.com provides general legal information, not legal advice.