Apr 25, 2024 - Business

Mapped: Where noncompete agreements are banned or restricted

State restrictions on noncompete agreement laws
Reproduced from Economic Innovation Group; Note: Income restrictions refer to states where noncompetes are enforceable depending on an employee's income level. Other restrictions include noncompetes for certain types of workers, duration, etc.; Map: Axios Visuals

A nationwide ban on noncompete agreements, which prohibit employees from taking jobs with their employer's competitors, looks set for a bruising court battle.

Why it matters: Even if the national rule is rejected, employers still face restrictions on noncompetes at the state level.

Plenty of states already limit the use of noncompete agreements — Minnesota became the fourth state to pass a ban last year.

  • And more are considering passing restrictions — many aimed at the health care sector, where these contracts are particularly popular, as Axios' Tina Reed reports.

Between the lines: The lawsuit centers on the FTC's ability to establish a nationwide ban. It doesn't challenge states' regulating noncompetes.

Go deeper