50-state noncompete chart updated
We have just updated our 50-State Noncompete Chart again. This update reflects the following:
- Most significantly, we updated the chart to reflect the brand new law in D.C.
- We also removed the weekly threshold for Colorado, as upon further consideration, we do not believe that the weekly threshold is required (though it is recommended). Note that we expect the annual threshold to increase to $112,500 as of January 1, 2023. (The chart will be updated after the amount is confirmed.)
- We updated the entry for Washington (state) to add a note that, although a court may reform an overly broad noncompete, the “employee will be entitled to ‘actual damages’ or a $5,000 statutory penalty, ‘plus reasonable attorneys’ fees, expenses, and costs.” We also updated the final column to match the previously-updated standards column, explaining that a noncompete cannot be enforced against someone who was terminated without cause unless, during the restriction, the employee is paid “compensation equivalent to the employee’s base salary . . . minus compensation earned” at another job.
The chart is now fully up to date through November 21, 2022.
Though a stand-alone resource, the noncompete chart (which was the first of its kind and has been updated regularly since 2010) works as a companion to our 50-state and federal survey chart of trade secret laws (which I originally prepared on August 14, 2016, is likewise updated as laws have changed).
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. In addition, our state-by-state notice requirements cheatsheet and our state-by-state “low-wage” thresholds chart are both available here.
*Thank you to Erika Hahn for her ongoing help ensuring that I am on top of the many recent developments around the country.