The utility of a 50 state survey on noncompetes has come up at various points. So, I finally took it upon myself to create one and make it publicly available. The chart is a summary of employee noncompetition laws and applicable standards throughout the country.
The chart covers the following:
- Whether noncompete agreements are permitted in the state
- Governing statutory authority, if any
- Identification of the protectable interests (also known as “legitimate interests” or “legitimate business interests”)
- The applicable standards for enforcement
- What, if any, industries or professions are exempt from noncompete agreements
- Whether continued employment is sufficient consideration to support a noncompete
- Whether the state follows the reformation rule (also known as “judicial modification,” the “rule of reasonableness,” the “reasonable alteration approach,” and the “partial-enforcement” rule), the blue pencil doctrine, or the red pencil doctrine (also known as the “all or nothing” rule)
- Whether noncompetes are enforceable against at-will employees whose employment was terminated without cause
Check back for periodic updates.
Please note that the chart is not legal advice, nor is it a substitute for proper legal research and advice. It is provided for informational purposes only.