Are Non-Compete Agreements Enforceable? State-by-State (2026)
A non-compete that's unenforceable in your state is worse than no non-compete — it gives false comfort. Enforceability in 2026 is a patchwork: some states ban them outright, others uphold narrow ones, and federal rules have narrowed them for low-wage workers.
ATTORNEY REVIEW REQUIRED: CreateDocs.ai is not a law firm. Non-compete law changes frequently and varies by state and worker classification. Have a lawyer review before relying on one.
The spectrum
- Banned or near-banned: California, Oklahoma, North Dakota broadly void non-competes. Minnesota and others have joined the restrictive camp.
- Narrowly enforced: Most other states uphold non-competes only if reasonable in scope, geography, and duration, and tied to a legitimate business interest (trade secrets, customer relationships).
- Low-wage carve-outs: Many states and federal guidance limit or bar non-competes for workers below a salary threshold.
What courts actually uphold
When a non-compete is allowed, courts scrutinize:
- Duration — 6–12 months is far more defensible than 2–3 years.
- Geography — limited to where the employee actually worked, not the whole country.
- Scope — limited to the specific business the employee touched.
- Consideration — something given in exchange (a job, a raise, a bonus).
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Use these instead (often stronger)
- Non-solicitation: bars poaching clients or employees — enforceable far more often than non-competes.
- Non-disclosure / confidentiality: protects trade secrets without restricting where someone works.
- IP assignment: ensures work product belongs to the company.
Practical takeaway
Don't default to a non-compete. For most businesses, a tight non-solicitation + NDA + IP assignment package protects what matters and survives a challenge. Reserve the non-compete for true trade-secret scenarios, scoped narrowly, and reviewed by a lawyer in the relevant state.