Non-Compete

A non-compete agreement (also called a restrictive covenant) prohibits you from working for competitors — or starting a competing business — for a defined period after leaving. Courts across the country take wildly different views on enforceability. California, North Dakota, Oklahoma, and Minnesota have banned most non-competes entirely. Other states (like Florida) enforce them very aggressively. Even unenforceable non-competes can create real-world harm: an employer can sue you, requiring you to spend money on legal defense even if you ultimately win. The key variables are geographic scope (city vs. nationwide), duration (6 months vs. 3 years), and the definition of 'competitor.' Overly broad non-competes that cover any business in your entire industry are the most dangerous. The FTC attempted a nationwide ban in 2024 but it was blocked by courts — the legal landscape is still evolving.

Check your state's law immediately — if you're in California, Minnesota, Oklahoma, or North Dakota, the clause is likely unenforceable. In other states, negotiate for: (1) limited geography to your actual work territory, (2) duration of 6 months or less, (3) narrow definition of competitor, and (4) additional compensation for signing. An employment attorney can tell you exactly what's enforceable in your jurisdiction.