Are non-compete agreements enforceable?

A non-compete restricts where and for whom you may work after leaving a job. Enforceability is a matter of state law and varies enormously. California voids them almost completely and has strengthened that prohibition, with Minnesota, North Dakota, and Oklahoma taking similarly strict positions. Most other states apply a reasonableness test, asking whether the restriction protects a legitimate business interest such as trade secrets or customer relationships, and whether its duration, geographic scope, and range of prohibited activity are no broader than necessary. Courts in some states will narrow an overbroad clause rather than void it, while others strike the whole thing.

Two things worth knowing before signing or complying. Many non-competes in circulation are unenforceable as written, particularly those applied to lower-wage workers, and several states have banned them below income thresholds, but an unenforceable agreement can still deter people who assume it binds them, which is often the practical point of including it. And the federal picture has been actively contested, with the Federal Trade Commission pursuing a broad ban that has been the subject of litigation, so the current state of federal rules is worth verifying rather than assuming. Related clauses often travel with a non-compete and are treated differently: non-solicitation agreements restricting contact with clients or coworkers, and confidentiality agreements protecting trade secrets, both of which are generally more enforceable. Anyone facing a real restriction should get advice from an employment lawyer licensed in their state.