A new resource about state rules on non-compete agreements is available from the Center for Workplace Compliance, our affiliated nonprofit membership association. This resource is designed to help CWC members navigate non-compete standards across the 50 states and Washington, D.C.
A non-compete agreement is a legal contract between an employer and an employee that restricts the employee from engaging in specified activities that compete with the employer’s business, typically after the employee leaves the job. These activities may include working for a competitor, starting a competing business, or disclosing trade secrets or confidential information that could benefit competitors.
Employee non-compete agreements have been in the crosshairs of both the federal government and state governments for a long time. While most jurisdictions permit use of non-compete agreements, states regulate their use in various ways. In recent years, the most common strategy among states has been the prohibition of non-compete agreements involving lower-paid employees. A few states totally ban non-compete agreements.
CWC members can read more here.