Conor Meyers — Co-Founder & Business AttorneyHas built and run businesses; advises owners on contracts, transactions, and risk. About Conor →

A non-compete is only worth the paper it's on if it's enforceable where you are — and that's a moving target.

Non-compete and non-solicitation agreements are common tools for protecting a business when employees leave — but their enforceability is one of the fastest-changing areas of employment law. What’s enforceable varies dramatically by state, and the trend has been toward greater restriction, especially of non-competes. A business relying on an agreement that isn’t enforceable where it operates has little real protection. This guide explains how these agreements work and why confirming current local law is essential. Given how quickly this area is evolving, it’s general information, not a substitute for current, jurisdiction-specific advice.

We help businesses get this right from the start. This is general information, not advice on a specific situation.

A non-compete is only worth it if it’s enforceable where you are — and that’s a moving target.

What these agreements do

Non-compete and non-solicitation agreements restrict a departing employee’s post-employment conduct. A non-compete limits the employee’s ability to work for competitors or start a competing business, usually within a defined scope, time, and geography. A non-solicitation agreement is narrower, restricting the employee from soliciting the business’s customers or employees. As the Legal Information Institute’s overview of the law.cornell.edu reflects, these are restraints on a person’s ability to work, which is why courts scrutinize them. They aim to protect legitimate business interests — trade secrets, customer relationships, investment in the employee — but that protection depends entirely on enforceability.

The trend is toward restricting non-competes; yesterday’s rule may not be today’s.

Enforceability varies and is changing fast

The central reality of these agreements is that their enforceability varies dramatically by jurisdiction and has been changing rapidly. Some states enforce reasonable non-competes; others heavily restrict or largely prohibit them, and the clear trend has been toward greater restriction, with significant legal and regulatory developments in recent years. Because this area is evolving quickly and my general knowledge may not reflect the latest changes, the enforceability of a non-compete where you operate must be confirmed against current local law before you rely on it. Treating a non-compete as automatically enforceable is a serious and increasingly common mistake.

What courts look at where they're allowed

In jurisdictions that do enforce these agreements, courts typically require them to be reasonable — protecting a legitimate business interest, and no broader than necessary in scope, duration, and geography. An overbroad non-compete may be struck down or narrowed even where such agreements are generally permitted. Non-solicitation agreements, being narrower, are often more readily enforced than full non-competes. The requirement of reasonableness means these agreements must be carefully tailored, not copied as broad boilerplate. But reasonableness only matters in places that enforce them at all — which is why confirming local law comes first.

Alternatives and getting current advice

Because non-compete enforceability is uncertain and shrinking in many places, businesses should consider alternatives that protect legitimate interests more reliably: robust confidentiality and trade-secret protections, narrower non-solicitation agreements, and strong IP assignment. These often protect the underlying interests — confidential information and customer relationships — more durably than a non-compete that may not hold up. Given how fast this area is changing and how much it varies by location, both employers relying on these agreements and employees asked to sign them should confirm current, jurisdiction-specific law with counsel rather than assuming what was true before still holds today.

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