ARCHIVE PAGE: Noncompete Map (7.1.2025)

*NOTE: This is an archived page with out of data data. The most current noncompete map may be found here.

This interactive map provides a comprehensive overview of codified noncompete restrictions across all 50 states. KBK Senior Associate Rachel E. Green wrote a companion piece to this map, “Noncompete Agreements: What Are They, and What’s the Status of Laws Restricting Them Nationwide?” to provide necessary context and background on the history of noncompete agreements and their current status state-by-state.

Please note: This map does not constitute legal advice and is simply a survey of current statutory restrictions on noncompetes – i.e., limits that have been passed into law. But there are also limits that courts have developed on noncompetes in many states. If you are trying to determine whether your noncompete is enforceable in your state, consult with an attorney in your state, or consider contacting the attorneys at Katz Banks Kumin to schedule a consultation.

See the data used for this map — this data is current as of July 1, 2025.

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San Francisco, CA

235 Montgomery Street, Suite 665
San Francisco, CA 94104

Phone: 415-813-3260

Protectable Interests

Applicable Statue:
Ala. Code §§ 8-1-190 – 197 (2015)

Category: Protectable Interests:

Protected Employees: Listed exemptions, including: “where the agent, servant, or employee holds a position uniquely essential to the management, organization, or service of the business,” § 8-1-190(b)(1); sale of good will; dissolution of business

Penalties: injunctive relief; actual damages; attorneys’ fees or costs

Impact on NDA’s Nonsolicitations, etc: some nonsolicits permitted, see § 8-1-190(b)(3), (5)

Retroactive?
No

No restrictions on noncompetes

Healthcare Industry Noncompete Bans

Applicable Statue:
AR Code § 4-75-101 (July 22, 2015); as amended by S.B. 139 (signed into law Mar. 4, 2025)

Protected Employees:
Physicians

Exemptions:
Defines protectable business interests to support noncompete agreements; requires the agreement to be limited in time and scope not greater than necessary to defend the protectable business interests

Penalties: Injunctive relief; actual damages

Impact on NDA’s, Nonsolicitation Agreements:
Restrictions on noncompetes do not apply to nonsolicits, confidentiality agreements, nondisclosures, or employment agreements, § 4-75-101(i)(1)(A)

Proposed Legislation:
AR Legis 232 (2025), S.B. 139 recently amended the law to provide that physicians may not be restricted by noncompetes

No Restrictions on Noncompetes

Proposed Legislation:
H.B. 2589 (Jan. 27, 2025) would ban all noncompetes, prospectively.

Total Ban on Noncompete Agreements:

Applicable Statute:
Cal. Bus. & Prof. Code §§ 16600-16602.5 (latest amendments effective Jan. 1, 2024) [see Proposed Legislation column]

Protected Employees:
§ 16600.5(a) attempts to void any noncompete regardless of when and where it was signed, but ongoing litigation about whether this is enforceable

Penalties:
Injunctive relief; damages, penalties ($2,500 or more) and attorneys’ fees

Proposed Legislation:
S.B. 351 (Feb. 12, 2025) would ban contracts that restrict providers of physician or dental practices from competing after leaving, following acquisition by a private equity group or hedge fund

Wage Threshold Noncompete Laws

Applicable Statute:
Colo. Rev. Stat § 8-2-113 (Aug. 10, 2022) [see Proposed Legislation column]

Protected Employees:
Workers who make below $123,750 (as of 2024), $127,091 in 2025, with thresholds increasing annually; physicians

Exemptions from Noncompete Restrictions:
Sale of business; defined confidentiality provisions; certain TRAPs (training repayment agreement provisions); nonsolicits for persons who earn more than 60% of threshhold for defined “highly compensated workers” if limited to protecting trade secrets; “highly compensated workers” making above $123,750 (in 2024) and $127,091 (in 2025), with thresholds increasing annually.

Penalties:
Penalty of $5,000 for each worker or prospective worker, injunctive relief, and actual damages; employer may also be required to pay reasonable costs and attorney fees

Impact on NDAs, Nonsolitications:
Also restricts nonsolicits for persons who earn 60% or less of threshold for defined “highly compensated workers,” Colo. Rev. Stat. § 8-2-113(2)(d)

Retroactive?
No

Proposed Legislation:
S.B. 83 (Jan. 23, 2025) would remove the highly-compensated worker exemption for practice of medicine, dentistry, or registered nursing – has been passed and sent to Governor

Healthcare Industry Noncompete Bans

Applicable Statutes:
Conn. Stat. §§ 20-14p (July 1, 2023); 20-101d (July 1, 2023); 20-12k (July 1, 2023); 20-681 (May 24, 2022) [see Proposed Legislation]

Protected Employees:
Limitations on permissible noncompetes described in statute texts for certain professions, including: physician; physician assistant; advanced practice registered nurse; home health services

Retroactive?
No

Proposed Legislation:
H.B. 7196 (Mar. 6, 2025) would implement a wage threshold for permissible noncompetes; and clarifies that noncompetes do not include nonsolicits, nondisclosures, confidentiality agreements, or no-reapply agreements

Wage Threshold; Industry Noncompete Bans; Healthcare Industry Noncompete Bans

Applicable Statute: D.C. Code §§ 32-581.01 – 32-581.05 (Oct. 1, 2022)

Protected Employees:
Employees making less than $158,364 (in 2025) annually (increased every year), or less than $257,000 annually for medical specialists; broadcast employees (regardless of their annual compensation)

Exemptions from Noncompete Restrictions:
For highly-compensated employees, as defined, must have geographical limitation, functional scope, not to exceed one year (two if medical specialist)

Penalties:
Monetary penalties to employee ranging from $250 to $3,000 depending on violation; administrative penalties

Retroactive?
No

Misc:
Includes anti-retaliation provision prohibiting employers from retaliating against employee for asking about or objecting to a noncompete provision

Healthcare Industry Noncompete Bans

Applicable Statute:
6 Del. Code § 2707 (1983)

Protected Employees:
Physicians

Protectable Interests

Applicable Statute:
Fla. Stat. Ann. § 542.335 (1996) [see Proposed Legislation column]

Protected Employees:
Void if not supported by legitimate business interest.

Exemptions from Noncompete Restrictions:
Permissible if limited and reasonable in time, area, and line of business, and if protect a “legitimate business interest” such as trade secrets, confidential information, substantial relationships with existing customers, goodwill, extraordinary training.

Penalties:
Injunctive relief (including requiring a bond for temporary injunctive relief); attorneys’ fees and costs

Retroactive?
No

Proposed Legislation:
H.B. 1219 (PASSED Apr. 24, 2025) would permit garden leave noncompetes, and restricts permissible noncompetes to those limited in time and by geographic area [goes into effect July 1, 2025]

Protectable Interests

Applicable Statute:
Ga. Code Ann. §§ 13-8-50 – 59 (May 11, 2011) [see Proposed Legislation column]

Protected Employees:
Void if not supported by legitimate business interest

Exemptions from Noncompete Restrictions:
Permissible if it serves legitimate business interest, and if reasonable in time, geographic area, and scope of prohibited activities.

Penalties:
Injunctive Relief

Impact on NDAs, Nonsolitications:
Restricts nonsolicits and nondisclosures unless employee customarily solicits, engages in sales, supervises, or performs other enumerated tasks, see Ga. Code Ann. § 13-8-53(a)

Proposed Legislation:
H.R. 592 (creating a House Study Committee on Noncompete Clauses in Physician Contracts)

Industry Bans (non-healthcare)

Applicable Statute:
Haw. Rev. Stat. § 480-4 (Jan. 1, 2015) [see Proposed Legislation column]

Protected Employees:
Technology business employees

Exemptions from Noncompete Restrictions:
Noncompetes must protect a legitimate business interest and be reasonable in scope, duration, and burden.

Impact on NDAs, Nonsolitications:
Nonsolicits also banned for technology business employees

Proposed Legislation:
S.B. 1161 (Jan. 17, 2025) would ban noncompetes for restaurant and retail employees, retroactive to July 2015

Protectable Interests

Applicable Statute:
Idaho Code §§ 44-2701 – 2704 (July 1, 2008) [see Proposed Legislation column]

Protected Employees:
Noncompetes are void if not supported by legitimate business interest and employee is not a “key employee” or “key independent contractor” as defined by the statute

Exemptions from Noncompete Restrictions:
Must protect a legitimate business interest and involve a “key employee” or “key independent contractor,” as defined by the statute, and if reasonable as to duration, geographic scope, and prohibited activities

Proposed Legislation:
S.F. 380 (Feb. 19, 2025) would implement wage thresholds restricting noncompetes for registered nurses and advanced registered nurses, and would impose limitations on noncompetes even for those with incomes above the threshold; would also specify penalties for violation

Heathcare Industry Ban

Applicable Statute:
IC § 25-22.5-5.5-2.5 (July 1, 2023)

Protected Employees:
Primary care physicians

Retroactive:
No

Proposed Legislation:
S.B. 475 (Jan. 13, 2025) (PASSED May 6, 2025) would expand existing primary care physician ban to include all physicians; H.B. 1625 (Jan. 21, 2025) would ban noncompetes; S.B. 503 (Jan. 14, 2025) establishes a task force to study whether noncompetes would loosen restraints on trade and create greater competition in the health workforce

Wage Threshold Noncompete Laws

Applicable Statute:
820 ILCS §§ 90/1 et seq. (Jan. 1, 2022) [see Proposed Legislation column]

Protected Employees:
Workers who make less than $75,000 annually, with threshold increasing at regular intervals; void if enforcement is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services.

Exemptions from Noncompete Restrictions:
Workers who make more than $75,000 annually, with threshold increasing at regular intervals, but must protect a legitimate business interest (as described in the statute) and be reasonably restricted as provided in the statute

Penalties:
Attorneys fees and costs; civil penalty not to exceed $5,000 per violation, o r $10,000 for each violation within a 5-year period.

Impact on NDAs, Nonsolitications:
Bans nonsolicits for employees who make less than $45,000 annually, with threshold increasing at regular intervals

Retroactive:
No

Proposed Legislation:
H.B. 1642 (Jan. 28, 2025) would raise the income threshold to $300,000; H.B. 2561 (Feb. 4, 2025) would ban noncompetes for reproductive healthcare or maternity care professionals if likely to reduce the availability of reproductive healthcare or maternity care; H.B. 3213 (Feb. 6, 2025) would prohibit noncompetes and nonsolicits after January 1, 2026

Healthcare Industry Ban

Applicable Statute: Iowa Code §§ 135Q.1, 3, 4 (May 9, 2024); Iowa Code § 135Q.2 (July 1, 2024)

Protected Employees:
Health care employment agency employees; healthcare technology platform employees

Penalties:
Monetary penalties, Iowa Code § 135Q.4

No restrictions on noncompete agreements.

Healthcare Industry Bans

Applicable Statute:
KRS § 216.724 (June 29, 2023)

Protected Employees:
Health care services agency employees
Temporary direct care employees

Retroactive?
No

Proposed Legislation:
H.B. 690 (Feb. 19, 2025) would prohibit noncompetes for employees making less than $2,000/week.

Healthcare and Other Industry Bans

Applicable Statute:
La. Rev. Stat. § 23:921 (Jan. 1, 2025)

Protected Employees:
Primary care and other physicians (noncompetes are permitted but with time limits)
Automobile Salespeople

Exemptions from Noncompete Restrictions:
Must be protecting legitimate business interest and be limited in scope, time, and other parameters described in statute

Penalties:
Injunctive relief

Retroactive?
No

Wage Threshold and Healthcare Industry Bans

Applicable Statute:
Md. Code, Lab. & Empl. § 3-716 (June 1, 2024)

Protected Employees:
Low-wage workers earning 150% of state minimum wage ($46,800 in 2024) (effective October 1, 2023); veterinarians and vet techs (effective June 1, 2024); healthcare providers providing direct patient care earning less than or equal to $350,000 (affecting agreements July 1, 2025 or later)

Exemptions from Noncompete Restrictions:
Reasonable duration and geographic scope; must be tied to legitimate business interests, no undue hardship to employee; for healthcare providers earning more than $350,000, may be subject to noncompetes not exceeding 10 miles from primary place of employment or 1 year from last day of work (affecting agreements July 1, 2025 or later)

Retroactive?
No

Misc:
Wage threshold likely applies to anti-moonlighting restrictions

Proposed Legislation:
S.B. 658 (Jan. 29, 2025) Would make noncompetes void upon separation, which may allow anti-moonlighting agreements

Wage Threshold, Industry-Specific Ban, Healthcare Industry Bans

Applicable Statute:
26 Me. Rev. Stat. Ann. § 599-A (Oct. 25, 2023)

Protected Employees:
Low-wage workers, earning less than or equal to 400% of the federal individual poverty level ($62,500 as of 2025); veterinarians if they do not have an ownership interest in the employer

Exemptions from Noncompete Restrictions:
Must be protecting legitimate business interest and reasonable as to time, scope, and interests to be protected, and no undue hardship to employee.

Penalties:
Fines of not less than $5,000 for each violation

Retroactive?
Yes in re veterinarian positions.

Wage Threshold, Industry Bans, Healthcare Industry Bans

Applicable Statutes:
Mass. Gen. Laws Ann. 149 § 24L (Jan. 14, 2021); 112 § 12X (1977) (physicians); 149 § 186 (1998) (broadcasters); 112 § 74D ( 1983) (nurses); 112 § 135C (Nov. 21, 2008) (social workers); 112 § 129B (Oct. 24, 2004) (psychologists)

Protected Employees:
Workers who have been laid off or terminated without cause; intern students; employees nonexempt under the FLSA; employees 18 years old or younger; physicians; broadcasters; nurses; social workers; psychologists.

Exemptions from Noncompete Restrictions:
Agreements must protect legitimate business interests, as defined, and comply with other requirements described in the statute; garden leave clauses are permitted if employer provides payment as described in the statute.

Impact on NDAs, Nonsolitications:
Definition excludes nonsolicits, nondisclosure or confidentiality agreements, invention assignment, garden leave clauses, and others, Mass. Gen. Laws Ann. 149 §24L(a)

Proposed Legislation:
S. 1366 (Feb. 27, 2025) would prohibit noncompetes for veterinarians in agreements establishing partnership, employment or any other professional relationship

Protectable Interests

Applicable Statute:
Mich. Comp. Laws § 445.774a (Mar. 29, 1985)

Exemptions from Noncompete Restrictions:
Noncompetes must exist to protect legitimate business interests, reasonable in time (No more than one year), space, and scope or line of business, and not be injurious to the public

Retroactive?
No

Misc:
The statute definition of “employee” includes independent contractors.

Proposed Legislation:
H.B. 4040 (Jan. 30, 2025) would ban noncompetes related to sale of business and except where the worker receives annual pay more than 200% of last published federal poverty line for family of three, and limits nonsolicits to one year; H.B. 4515 (May 13, 2025) would void physician noncompetes retroactively

Total Ban on Noncompete Agreements

Applicable Statute:
Minn. Stat. § 181.988 (July 1, 2023)

Protected Employees:
All employees (including independent contractors)

Exemptions from Noncompete Restrictions:
Only permissible for dissolution or sale of a business.

Penalties:
Injunctive relief; attorneys’ fees, Minn. Stat. § 181.988(d)

Impact on NDAs, Nonsolitications:
“A covenant not to compete does not include a nondisclosure agreement, or agreement designed to protect trade secrets or confidential information. A covenant not to compete does not include a nonsolicitation agreement, or agreement restricting the ability to use client or contact lists, or solicit customers of the employer.”

Retroactive?
No, it only applies to agreements in place on or after July 1, 2023.

Misc.:
“Employee” defined to include “independent contractor”

Proposed Legislation:
H.F. 2441 (Mar. 17, 2025) (PASSED) would permit noncompetes up to one year for employees making at least $200,000 if they work in research & develoipment or creation of trade secrets, or manage same, and would allow noncompetes for all making more than $500,000 annually; H.F. 1768 (Mar. 3, 2025) would permit noncompetes up to one year for employees making at least $120,000 if primary duties include research and development or creation of trade secrets, or supervise same, and would allow noncompetes for all making over $500,000 annually

No restrictions on noncompete agreements.

Proposed Legislation:
H.B. 806 (Jan. 16, 2025) (FAILED) would have banned noncompetes for health care providers.

Protectable Interests

Applicable Statute:
28 Mo. Stat. Ann. § 431.202

Exemptions from Noncompete Restrictions:
Noncompetes must be reasonably necessary to protect legitimate business interests (defined in the statute), limited in time and geographic scope, and not an unreasonable restraint on employee

Retroactive?
Yes

Proposed Legislation:
S.B. 383 (Jan. 8, 2025) would prohibit noncompetes for physicians unless specific circumstances present, and limits them to one year and a 50-mile radius; H.B. 1326 (Feb. 17, 2025) would ban noncompetes for workers paid hourly wages; H.B. 1400 (Feb. 20, 2025) would require home health agencies to require each in-home healthcare provider to sign a noncompete for six months.

Total Ban on Noncompete Agreements

Exemptions from Noncompete Restrictions:
Sale of goodwill or business; dissolution of partnership; courts have permitted some noncompetes to survive statutory presumption that they are void if they are narrowly tailored and intended to protect trade secrets/ legitimate business interests.

Protectable Interests

Applicable Statute:
N.C. Gen. Stat. § 75-4

Exemptions from Noncompete Restrictions:
Noncompetes must be in writing; reasonably necessary to protect legitimate business interests; reasonable in time and space.

Proposed Legislation:
H. 269 (Mar. 3, 2025) would void noncompetes for employees earning less than $75,000 annually, and no-poach agreements; H. 973 (Apr. 14, 2025) would void restrictive covenants other than confidentiality or TRAP agreements for workers earning less than annual mean wage of NC employees at time of signing agreement or during employment; S. 673 (Mar. 26, 2025) bans noncompetes for health professionals employed by a hospital; H. 67 (Feb. 5, 2025) (PASSED) bans noncompetes for healthcare professionals employed by hospitals

Total Ban on Noncompete Agreements

Applicable Statute:
North Dakota Century Code § 9-08-06 (Aug. 1, 2019)

Protected Employees:
All

Exemptions from Noncompete Restrictions:
Only permissible for dissolution or sale of a business or in case of sale of good will.

No Restrictions on Noncompete Agreements

Proposed Legislation:
L.B. 308 (Jan. 15, 2025) would ban noncompetes for healthcare staffing agency employees

Wage Threshold, Healthcare Industry Bans

Applicable Statute:
N.H. Rev. Stat. § 275:70 (July 28, 2014), § 275:70-a (Sept. 8, 2019) (low-wage workers); § 329:31-a (Aug. 5, 2016) (physicians); § 315:18 (June 25, 2018) (podiatrists)

Protected Employees:
Physicians; podiatrists; low-wage employees earning less than or equal to twice the federal minimum wage or tipped minimum wage.

Exemptions from Noncompete Restrictions:
Must be protective of legitimate business interests, no undue hardship to employee, not injurious to the public.

Retroactive?:
No

Proposed Legislation:
H.B. 386 (Jan. 10, 2025) would prohibit noncompetes for nurses or licensed nursing assistants.

No Restrictions on Noncompete Agreements

Proposed Legislation:
S.B. 4385 (May 19, 2025), to ban most noncompetes, with exemptions for senior executives; would be retroactive; S.B. 4386 (May 19, 2025) to ban all noncompetes

Healthcare Industry Bans

Applicable Statute:
N.M. Stat. Ann. § 24A-4-2 (July 1, 2024)

Protected Employees:
Health Care Practitioners

Wage Threshold Restrictions

Applicable Statute:
Nev. Rev. Stat. § 613.195 (Oct. 1, 2021)

Protected Employees:
Hourly Employees

Exemptions from Noncompete Restrictions:
Presumptively void unless meet enumerated criteria including being supported by valuable consideration, narrowly tailored, no imposition of undue hardship on employee.

Penalties:
Attorneys’ Fees

Impact on NDAs, Nonsolitications:
States noncompetes may not restrict former employee from providing service to former customer if they did not solicit customer and customer voluntarily chose to leave and seek services from former employee.

No Restrictions on Noncompete Agreements

Proposed Legislation:
S.B. 4641 (Feb. 10, 2025), to ban most noncompetes, with exemptions for highly-compensated individuals (making $500,000 or more annually) and for sale of business; in response to prior bill, S.B. 3100-A, which was vetoed by Gov. Hochul in December 2023; A 2456 (Jan. 17, 2025) would ban noncompetes for employees making the greater of $15/hour or the state or local minimum wage

No Restrictions on Noncompete Agreements

Proposed Legislation:
S.B. 11 (Feb. 2025), would prohibit all noncompetes.

Total Ban on Noncompete Agreements

Applicable Statute:
Okl. Stat. § 15-219A (June 4, 2001)

Protected Employees:
All

Exemptions from Noncompete Restrictions:
Employer may restrict employee from “directly solicit[ing the sale of goods, services or a combination of goods and services from the established customers of the former employer,” Okl. Stat. § 15-219A(A)

Impact on NDAs, Nonsolitications:
Permits non-solicitations

Retroactive?
No

Wage Threshold Restrictions, Healthcare Industry Bans

Applicable Statute:
Or. Rev. Stat. § 653.295 (Jan. 1, 2022)

Protected Employees:
Home healthcare workers; employees who make below a specified wage threshold, which increase annually for inflation ($116,427 for 2025)

Exemptions from Noncompete Restrictions:
Restricted in time and place; minimum compensation threshold (above $116,427 for 2025); must not interfere with public interest; no more than 12 months; garden leave clauses are enforceable

Proposed Legislation:
S.B. 957 (Feb. 27, 2025) voids noncompetes for those with medical licenses unless the licensee holds atleast 5% share in business entity; S.B. 1139 (Jan. 13, 2025) would permit employees affected by Oregon’s noncompete laws to file a complaint with the Commissioner of the Bureau of Labor and Industries, and expands noncompete ban to nonsolicits; S.B. 468 (Jan. 13, 2025) would void noncompetes for licensed health professionals; H.B. 3227 (Jan. 13, 2025) would void noncompetes for medical license holders unless licensee owns at least 10% of medical entity; S.B. 951 (Jan. 28, 2025) (PASSED) voids noncompetes between medical licensees unless certain ownership conditions are met, and would permit noncompetes for 3 years under limited conditions.

Healthcare Industry Bans

Applicable Statute:
35 P.S. § 10321 et seq. (Jan.1, 2025)

Protected Employees:
Health care practitioners, as defined

Exemptions from Noncompete Restrictions:
Reasonably necessary to protect employer’s legitimate interests; reasonable in time and space

Retroactive?
No

Proposed Legislation:
S.B. 142 (Jan. 22, 2025) prohibits noncompetes for broadcasters; S.B. 680 (May 13, 2025) bans noncompetes for speech language pathologists, occupational therapists, physical therapists, and respiratory therapists; H.B. 1166 (Apr. 7, 2025) prohibits health care worker platforms from requiring workers to enter a noncompete with the platform

Wage Threshold Restrictions

Applicable Statute:
R.I. Gen. Laws §§ 28-59-1 – 3 (Jan. 15, 2020)

Protected Employees:
Employees nonexempt under the FLSA; student interns; employees 18 years or younger; low-wage employees whose earnings are less than 250% of federal poverty level.

Exemptions from Noncompete Restrictions:
Reasonably necessary to protect employer’s legitimate interests; reasonable in time and space; does not impose undue burden on employee; not likely to harm the public interest.

Penalties:
Injunctive Relief

Impact on NDAs, Nonsolitications:
Noncompetes do not include nonsolicits, nondisclosure or confidentiality agreements, invention assignment, separation agreements, or no-reapply agreements, among others see R.I. Gen. Laws § 28-59-2(8).

Retroactive?
Yes

Proposed Legislation:
S. 302 (Feb. 13, 2025) would prohibit noncompetes for all, but new exemptions for sale of business and protection of trade secrets; S. 703 (Mar. 7, 2025) prohibits noncompetes for physician assistants, but 5-year physician assistant noncompetes permissible in purchase or sale of a practice

No Restrictions on Noncompete Agreements.

Proposed Legislation:
H. 3273 (Jan. 14, 2025) (would prohibit nonprofits with annual gross revenue exceeding $1 billion from using noncompetes); and S.46 (Jan. 14, 2025) (would prohibit noncompetes for physicians).

Healthcare Industry Bans

Applicable Statute:
S.D. Codified Laws §§ 53-9-8 et seq.

Protected Employees:
Physicians, physician assistants, chiropractors, dentists, optometrists, and dozens more listed in the statute, S.D. Cod. Laws § 53-9-11.1

Exemptions from Noncompete Restrictions:
Permitted relating to sale of goodwill, dissolution of partnership, sale of a practice; if noncompete is limited to two years and in geographic scope.

No Restrictions on Noncompete Agreements.

Proposed Legislation:
S.B. 0995 and H.B. 1034 (companion bills), prospective bans of most noncompetes.

Healthcare Industry Bans

Applicable Statute:
Tex. Bus. & Com. Code §§ 15.50 – .52 (Sept. 1, 2009)

Protected Employees:
Some restrictions for licensed physicians

Exemptions from Noncompete Restrictions:
Reasonable as to time, geographical area, and scope of activity, and do not impose undue restraint than necessary to protect goodwill or other business interest ; specifies restrictions to permit noncompetes for licensed physicians.

Penalties:
Damages, injunctive relief, or both.

Proposed Legislation:
S.B. 1318 (Feb. 14, 2025) revises existing physician noncompete ban so that valid noncompetes under exemptions may not exceed 1 year in length or a 5-mile radius in geographic scope, and expands ban to healthcare practitioners in general; H.B. 4067 (Mar. 7, 2025) would prohibit noncompetes for all workers and senior executives except in sale of business.

Industry Bans (non-healthcare)

Applicable Statute:
Utah Code Ann. §§ 34-51-101 – 301 (May 10, 2016)

Protected Employees:
Broadcasters (limitations)

Exemptions from Noncompete Restrictions:
Noncompetes are restricted to one year; permits restrictive covenants relating to sale of a business.

Penalties:
Attorneys’ fees and costs; actual damages; arbitration costs.

Impact on NDAs, Nonsolitications:
Clarifies that severance agreements are permitted.

Retroactive?:
No

Proposed Legislation:
S.B. 228 (Feb. 6, 2025) (PASSED) would prohibit healthcare platforms from requiring healthcare worker to enter into noncompete.

Wage Threshold Restrictions

Applicable Statute:
Va. Code § 40.1-28.7:8 (amendment goes into effect July 1, 2025).

Protected Employees:
Low-wage employees, whose average earnings are less than average weekly wage of Virginia, or is entitled to overtime compensation under 29 U.S.C. 207

Penalties:
Attorneys fees, fees for expert witness, costs; civil penalties of $250 for second violation and $1,000 for third and each subsequent violation

Proposed Legislation:
S.B. 1218, 2025 Va. Laws Ch. 585 (Jan. 8, 2025) (PASSED) bans noncompetes for employees entitled to overtime under FLSA, regardless of weekly income

No Restrictions on Noncompete Agreements

Proposed Legislation:
H. 205 (Feb. 12, 2025) implementing wage threshold restrictions prohibiting noncompetes for employees earning less than $100,000 annually.

Wage Threshold Restrictions

Applicable Statute:
RCW §§ 49.62.005 – 900 (Jan. 1, 2020)

Protected Employees:
Employees making less than $100,000 annually (increased to adjust for inflation annually); independent contractors unless their earnings from party seeking enforcement exceed $250,000 annually.

Exemptions from Noncompete Restrictions:
Void unless certain terms are present as described in the statute, including indepen dent consideration for the covenant; if 18 months or longer, presumptively unenforceable.

Penalties:
Actual damages, attorneys’ fees and costs, penalty of $5,000.

Retroactive?
Retroactive to January 1, 2020.

Misc:
No cause of action if noncompete was signed prior to Jan. 1, 2020 and is not being enforced or leveraged.

Proposed Legislation:
S.B. 5023 (Jan. 13, 2025) prohibits noncompetes for domestic workers.

Protectable Interests

Applicable Statute:
Wis. Stat. Ann. § 103.465 (Mar. 2, 2016).

Exemptions from Noncompete Restrictions:
Permitted if restrictions are reasonably necessary to protect employer, and not unreasonable restraint.

Retroactive?
No

No Restrictions on Noncompetes.

Proposed Legislation:
H.B. 3118 restricting most noncompetes.

Total Ban on Noncompetes Agreements (effective July 1, 2025)

Applicable Statute:
Act No. 87 (goes into effect July 1, 2025)

Protected Employees:
Physicians specifically protected, but this is a general ban.

Exemptions from Noncompete Restrictions:
Sale of business, trade secrets, executive and management personnel, TRAPs and relocation agreements

Retroactive?
No

Proposed Legislation:
S.F. 107 (Act No. 87) (PASSED Mar. 19, 2025), broadly restricting noncompetes

Wage Threshold; Industry Noncompete Bans; Healthcare Industry Noncompete Bans

Applicable Statute: D.C. Code §§ 32-581.01 – 32-581.05 (Oct. 1, 2022)

Exemptions from Noncompete Restrictions:
For highly-compensated employees, as defined, must have geographical limitation, functional scope, not to exceed one year (two if medical specialist)

Penalties:
Monetary penalties to employee ranging from $250 to $3,000 depending on violation; administrative penalties

Retroactive?
No

Misc:
Includes anti-retaliation provision prohibiting employers from retaliating against employee for asking about or objecting to a noncompete provision