Non-Compete Clause Void & Unenforceability Checker (State-by-State)
Check if the non-compete agreement in your employment contract is 100% void and illegal under state bans (CA, MN, OK, ND) or low-wage salary thresholds.
1. Enter Your Case Details Runs in your browser
2. Your result Live Output
- 100% Void & Illegal (Bus. & Prof. § 16600.5): I live or perform my work in California, Minnesota, Oklahoma, or North Dakota (even if Employer is out-of-state) — California voids ALL employee non-competes regardless of where or when signed, and makes enforcing one a civil violation with mandatory attorney fees.
- Statutorily Void Under Wage Threshold: My compensation is below my state's statutory non-compete wage floor (e.g., WA >$120k, IL >$75k, CO >$123k, MA/VA/MD) — Over a dozen states completely ban non-competes for employees earning below statutory six-figure thresholds.
- Unenforceable Post-Layoff: I was laid off or terminated without cause (Massachusetts, Washington, Nevada ban enforcement after layoff) — Multiple states prohibit enforcing a non-compete against an employee who was laid off without garden-leave pay.
- Overbroad & Unreasonable Restraint: Geographic scope covers the entire world/country or duration exceeds 12–24 months without legitimate trade secrets — Even in states allowing non-competes, clauses broader than necessary to protect legitimate business interests fail.
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3. How the rule works
Who this is for
Employees bound by a non-compete who are changing jobs, and employers drafting restrictive covenants that may not be enforceable in a particular state.
The result depends mostly on where you live and work, and sometimes on how much you earn.
What to have ready
- The full agreement containing the non-compete and any choice-of-law clause.
- Where you live and where you do your work.
- Your current annual earnings.
- Details of the new job: employer, role and location.
The rule
California Business and Professions Code § 16600 voids contracts that restrain anyone from a lawful profession, trade or business, with narrow exceptions for the sale of a business or partnership. Section 16600.5, added in 2024, makes such agreements unenforceable regardless of where they were signed and lets employees sue for injunctive relief, damages and attorney's fees. Section 16600.1 required employers to notify affected employees by February 14, 2024 that their non-compete was void. Labor Code § 925 limits out-of-state choice-of-law clauses for employees who primarily live and work in California.
Minnesota (Minn. Stat. § 181.988, for agreements from July 1, 2023), North Dakota and Oklahoma also ban most employee non-competes. Other states set income floors: Washington (RCW 49.62) and Colorado adjust theirs each year, and Illinois (820 ILCS 90) bars non-competes for employees earning $75,000 or less. Massachusetts limits them to 12 months and bars them for non-exempt employees and those laid off or fired without cause. A Federal Trade Commission rule banning non-competes was set aside by a federal court in 2024 and has not taken effect.
Read the official text:
- California Business and Professions Code § 16600
- California Business and Professions Code § 16600.5
- Minnesota Statutes § 181.988
- Washington RCW 49.62
Worked example: three employees, one clause
A company in Texas uses the same 18-month national non-compete for three remote employees.
Employee in Los Angeles -> void under § 16600 and § 16600.5 Employee in Minneapolis -> void if signed on or after July 1, 2023 Employee in Chicago, $68,000 salary -> void, below Illinois $75,000 floor Same clause, three states, three different reasons.
Common mistakes
- Assuming the employer's home state law applies. For California and some other states, where the employee works controls.
- Confusing non-competes with non-solicitation or confidentiality clauses, which are treated differently.
- Taking files or customer lists when leaving. Trade secret law applies even where non-competes are void.
- Using an old income threshold; several states adjust them every year.
Limits of this tool
- Non-compete law varies by state and changes frequently; check the current statute and threshold.
- Courts in some states rewrite overbroad clauses instead of voiding them.
- The checklist does not cover sale-of-business or partnership non-competes.
Sources were last checked in October 2026. Statutes are amended often; if the official text differs from this page, the official text controls.
4. Clear Next Steps & Statutory Action Plan
- Identify the state where you live and work and find its non-compete law.
- Compare your earnings with any income threshold for the current year.
- Return confidential material and keep a record that you did, before starting a new job.
5. Frequently Asked Statutory Questions (Cal. Bus. & Prof. Code § 16600 & § 16600.1 (AB 1076 / SB 699); Minn. Stat. § 181.988)
My employer is in another state but I work in California. Does the non-compete apply?
Section 16600.5 makes non-competes void in California regardless of where the contract was signed, and Labor Code § 925 limits out-of-state choice-of-law clauses for California-based employees.
Is there a federal non-compete ban?
No. The FTC's 2024 rule was vacated by a federal court before it took effect, so state law governs.
Are non-solicitation clauses also void in California?
Clauses barring solicitation of customers are generally void under § 16600. Narrow protections for trade secrets remain enforceable.