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Check Your Non-Compete Agreement

Paste your non-compete clause and see what it actually restricts, in plain English — then use the checklist below to spot what to question before you sign.

Last reviewed October 2026 · Focused on US law

The short version: In the US, whether a non-compete can be enforced depends on your state. A few states void most employee non-competes, many only allow them above an income threshold, and the rest enforce them only if they are reasonable in time, area, and scope. There is no nationwide ban.

A quick first read, not legal advice. For a real dispute, talk to an employment lawyer in your state.

What to Check in Your Non-Compete

Courts in most states ask whether a non-compete is reasonable. These are the parts of the clause that usually decide it:

1. How long it lasts

Shorter restrictions, such as six months to a year, are generally easier to defend than two or three years, though what counts as reasonable varies by state and role.

2. Where it applies

A restriction limited to your city or market area is more likely to hold up than one covering a whole state, the entire country, or every facility your employer serves.

3. What work it blocks

A clause that blocks you from working for a few direct competitors is very different from one that bars you from your entire industry. Look for broad phrases like "any competitor" or "directly or indirectly."

4. Whether there is a real business reason

Employers usually need a legitimate interest to protect, such as trade secrets or key client relationships. If your role gives you no access to that kind of information, the restriction is harder to justify.

5. What you got in return

In some states, a non-compete signed partway through a job needs something extra in return, such as a raise or bonus, to be enforceable.

Where You Work Matters Most

  • Ban states: California, Minnesota, North Dakota and Oklahoma void most employee non-competes, and Wyoming banned most new ones from July 2025.
  • Income-threshold states: A growing number of states, including Illinois, Maryland and Oregon, only allow non-competes for workers earning above a set amount.
  • Reasonableness states: Most other states enforce a non-compete only if it is reasonable. Florida moved the other way: its 2025 CHOICE Act made non-competes easier to enforce for some higher earners.
  • Sale of a business: Non-competes signed when selling a business are usually enforced more readily, even in states that ban employee non-competes.

Before You Sign: What to Ask For

  • A shorter time limit, such as six months.
  • A smaller area, such as your city or market.
  • A short list of named competitors instead of a whole industry.
  • Pay during the restricted period.
  • A carve-out for clients you bring with you.

Related Guides

Frequently Asked Questions

Is my non-compete enforceable?

It depends mainly on where you work and what the clause says. A few US states void most employee non-competes, many only allow them above a set income, and most others enforce them only if they are reasonable in time, area, and scope and protect a real business interest.

Is there a nationwide ban on non-competes in the US?

No. The FTC tried to ban most non-competes in 2024, but a court blocked the rule and the FTC dropped it in September 2025. State law decides.

Can I negotiate a non-compete before signing?

Often, yes. You can ask to shorten the time limit, shrink the geographic area, name specific competitors instead of a whole industry, or add pay during the restricted period.

Can SimpleClause tell me if my non-compete will hold up in court?

No. SimpleClause gives you a quick plain-English first read of what your clause says and what to look at more closely. It is not legal advice; for a real dispute, talk to an employment lawyer in your state.