Which states have banned noncompetes?

Earlier this year, New York Gov. Kathy Hochul vetoed a bill that would've banned noncompetes and added the state to a short list of those prohibiting noncompetes. 

Here are the five states that have virtually banned all noncompetes, as laid out by attorneys from the law firm Constangy, Brooks, Smith & Prophete on Aug. 29 in JDSupra:

1. California

California, a state that has banned noncompetes since the 1800s, passed a law in September extending the ban to apply to contracts outside of the state. 

2. Colorado

In 2022, Colorado banned all noncompetes except for "highly compensated workers." Noncompetes that were entered on or after Aug. 10, 2022, cannot be used against workers who earn less than $112,500 in 2023.

3. Oklahoma

Noncompetes are unenforceable in Oklahoma.  

4. North Dakota

Noncompetes are unenforceable in North Dakota.  

5. Minnesota

Minnesota has prohibited post-employment noncompetes, but agreements signed on or before July 1, 2023, remain enforceable.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Webinars

Featured Whitepapers

Featured Podcast