States That Banned Non-Compete Agreements (2026)
After the FTC’s national non-compete ban was struck down, state law is what decides whether your non-compete is enforceable. Four states ban them outright — here is the map.
On this page
After the FTC's nationwide non-compete ban was struck down in court, state law is once again what decides whether your non-compete is enforceable. Four states ban them outright; most others allow them only within limits. Here's the 2026 map and what it means for your contract.
The short version
- Four states ban non-competes outright: California, Minnesota, North Dakota, and Oklahoma (plus DC).
- 34 more states restrict them — often exempting workers below a salary threshold.
- The FTC's nationwide ban was struck down by a federal court in 2024.
- Enforceability now depends entirely on the law of your state.
What is a non-compete agreement?
A non-compete is a contract clause that bars an employee, after leaving a job, from working for a competitor or starting a competing business for some period of time within some geographic area. Employers say they protect trade secrets and investment in training; critics say they trap workers and suppress wages and mobility.
States that ban non-competes
These states make non-competes void and unenforceable for most workers:
States that ban non-compete agreements
4 · June 2026States that bar employers from enforcing non-compete clauses against most workers. Washington, D.C. also bans them.
34 more states restrict non-competes (often by salary). The FTC’s nationwide ban was struck down in court in 2024, so state law controls.
California is the most famous — its broad ban is often credited as one ingredient in Silicon Valley's job-hopping, high-mobility labor market. Washington, D.C. also bans them, and Washington state has enacted a sweeping ban taking effect in 2027.
What happened to the FTC ban
In 2024, the Federal Trade Commission issued a rule that would have banned most non-competes nationwide. It never took effect: in November 2024 a federal court struck it down, ruling the FTC had exceeded its statutory authority, and the rule was later removed from the federal regulations.
How states rank on regulatory burden
Non-compete policy is one slice of a state's labor and regulatory climate, alongside licensing and other workplace rules:
- 1IDIdaho10.0A+
- 2SDSouth Dakota9.8A+
- 3NDNorth Dakota9.6A+
- 4MTMontana9.4A+
- 5AKAlaska9.2A+
- 6AZArizona9.0A+
- 7NVNevada8.8A
- 8WYWyoming8.6A
- 9KSKansas8.4A-
- 10NENebraska8.2A-
See all 50 states ranked on regulatory burden
Occupational licensing, labor rules, and red tape — the full ranking with a color-coded map.
Is your non-compete enforceable?
Outside the four ban states, most states enforce non-competes only if they're reasonable. Courts typically weigh:
- Scope — is it limited to genuinely competing work?
- Duration — months are more defensible than years.
- Geography — a local limit beats a nationwide one.
- Salary — many states now exempt workers below an income threshold.
- How you left — some courts won't enforce against employees laid off without cause.
Frequently asked questions
Which states ban non-compete agreements?
Four states ban non-competes outright for most workers — California, Minnesota, North Dakota, and Oklahoma — plus Washington, D.C. Another 34 states restrict them, often by exempting workers below a salary threshold.
What happened to the FTC non-compete ban?
The FTC issued a rule in 2024 that would have banned most non-competes nationwide, but a federal court struck it down in November 2024, ruling the agency exceeded its authority. So enforceability is governed entirely by state law again.
Are non-competes enforceable in my state?
It depends. In California, Minnesota, North Dakota, and Oklahoma they’re generally void. In most other states they’re enforceable only if reasonable in scope, duration, and geography — and many states now exempt lower-wage workers.
Is a non-compete enforceable if I was laid off?
In several states, courts are less likely to enforce a non-compete against an employee who was terminated without cause — but this varies, so check your state’s rules and consider legal advice.
Sources
Regulatory Burden by State: all 50 ranked
See where every state lands on regulatory freedom, with a color-coded map.
Who represents you?
Enter your ZIP code to see your US House representative, senators, and governor — with their voting records, donors, and integrity scores.