Non-Compete & Non-Solicit Agreements

Many workers, including some in construction, trades, sales and healthcare, are asked to sign agreements that limit where they can work after leaving a job. These agreements can affect your next job and your income. Whether they can be enforced depends heavily on your state and the exact terms.

• Workers
• Job Seekers
• Supervisors
• Contractors

Types of agreements

What the law says

• State law is the main rule. A few states ban most non-competes entirely, and many others limit them by pay level, profession or contract terms. Most others enforce them only if they are reasonable in time, area and scope and protect a legitimate business interest, such as trade secrets or customer relationships.
• Some states void non-competes for low-wage workers, require notice before you sign, or require the employer to pay you during the restricted period.
• In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but courts blocked and set aside the rule before it took effect. Check the current status. The FTC may still challenge unfair non-competes case by case.
• Federal rules and some state laws protect your right to report workplace safety or legal violations and to talk to agencies. An agreement can't legally stop you from reporting to OSHA, the Department of Labor or other agencies. See Whistleblower Protection.
• Non-competes generally don't apply to the same job in a different industry, and courts often refuse to enforce overly broad ones, or may rewrite them to something narrower.

Before you sign

• Read the entire agreement, including the fine print. Ask for a copy and time to review it.
• Look for how long it lasts (months or years), where it applies (a city, state or the country), and what work it covers.
• Ask if you get something in return, such as extra pay, a promotion or a bonus. Many states require this for it to be valid when signed after you start the job.
• Negotiate: shorten the time, narrow the area, or carve out clients you already had. Get any promise in writing.
• Check whether you are being classified as an independent contractor. Misclassified workers often can't be bound as employees can. See Misclassification.
• Have a lawyer or union representative review it if a lot of money or your career is at stake.

If you're leaving a job with a non-compete

• Re-read the agreement and check your state's rules. Don't assume it's enforceable, or that it isn't.
• Don't take documents, customer lists or data from your employer. That can be a separate legal problem. See Online Privacy.
• If you're fired without cause or laid off, some states limit enforcement.
• Talk to a lawyer before taking a job at a competitor. Many offer a short consultation. If your new employer is aware, some will help cover legal costs or negotiate a release.
• If you get a cease-and-desist letter, don't ignore it, and don't reply without advice. Keep copies of everything.

No-poach and wage-fixing agreements

Agreements among competing employers not to hire each other's workers, or to fix wages, can violate antitrust law. These agreements can suppress pay. If your employer or franchise says you can't work for another location in the same chain, ask whether it's legal. You can report possible violations to the Department of Justice Antitrust Division or the FTC.

Non-compete checklist

• I read the entire agreement and know the time, area and scope
• I know my state's rules for non-competes and low-wage workers
• I asked what I get in return and negotiated narrower terms
• I haven't taken any documents or data from my employer
• I talk to a lawyer or union rep before signing or breaking one

Last updated: October 5, 2026