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.
Please note that the most current version of both the 50 State Noncompete Chart and 50 state and federal survey chart of trade secret laws can always be found on my firm’s resources page.