Where noncompetes are banned

Amid growing discontent among physicians on noncompete agreements, which prohibit clinicians from joining a competing practice or setting up their own within a particular distance from their previous practice for a certain period of time, many states have banned the practice.

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Here are six states that have banned noncompetes or are considering doing so, as laid out by attorneys from the law firm Constangy, Brooks, Smith & Prophete on Aug. 29 in JDSupra:

California: Noncompetes are not enforceable and violate public policy.

Minnesota: The state prohibits post-employment noncompetes. However, agreements signed on or before July 1, 2023, remain enforceable.

Nebraska: The state’s courts will not modify a noncompete to make it enforceable.

New York: A bill passed by both chambers of the Legislature provides for a complete ban on noncompetes. It is awaiting the signature of Gov. Kathy Hochul. The bill will not be retroactive.

North Dakota: Noncompetes are banned.

Oklahoma: Noncompetes are banned.

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