Is the FTC non-compete ban in effect right now?

No. The rule was vacated by a federal district court in 2025 and remains in litigation, so there is no nationwide ban. State law controls, and state rules change within a single year, so confirm your state before relying on any summary.

Which law applies if I signed in one state and work in another?

It depends on the choice-of-law and venue terms plus where the work happened. Ask counsel in writing whether the law at signing or at enforcement applies, and check both states on the state map before you assume a ban protects you.

Are non-solicits still enforceable where non-competes are banned?

Yes, typically. Client and employee non-solicits survive in many states that void competition bans, so read the list scope, the clock start, and the public-posting carve-out even when the non-compete is void.

Should I sign a non-compete if my state bans them?

Ask for the clause to be removed in writing instead of relying on a ban with a saving clause. A clause that is unenforceable still costs you defense fees and can delay a start date, so the clean fix is deleting it.

Non-Competes in 2026: FTC Status & State Trends

The non-compete map in 2026 is a moving line: the FTC ban rule was vacated and is in litigation, states keep banning, and courts keep narrowing. The practical rules: read your state, negotiate scope, and keep the paper.

The 2026 Map

FTC rule: vacated in federal court (2025), under appeal; the ban is not nationwide. The FTC's trade-secret enforcement continues (ftc.gov).
State bans: CA, MN, OK, ND are statutory bans; MN banned new non-competes for most workers. Illinois, Washington, Oregon keep income thresholds and notice rules.
Narrowing trend: courts blue-pencil overbroad clauses, void non-competes for low-wage workers, and favor non-solicits over non-competes (see the state map).

Practical Rules

Signing: negotiate carve-outs, garden leave, duration, geography, and public-posting exceptions — see the settlement menu for the language. Leaving: the injunction race is in the remedies guide, mobility rules in the mobility guide, and new-employer duties in the new-employer guide. The state trends keep moving: re-check before signing, and keep the offer paper in the diligence checklist.

Put the rule into action

Write the letter with the free Non-Compete Disclosure Letter generator. The state pages carry the local payout and notice windows, and the application tracker keeps the follow-up date in writing.

Put the rule into action

Non-Compete Clause — what it means and what to do

Check the rule that applies to you in one sitting

A 2026 non-compete question is answered in a fixed order, and most of it can be done before paying for a review:

Identify the state named in the clause, plus the venue and choice-of-law terms. A clause written in one state can be fought in another.
Check the current statute for that state with the state agency or legislature page linked on the state map, and check the date: rules that changed mid-year matter to agreements signed before or after.
Check the conditions: advance notice before signing, income or exemption thresholds, and any requirement to pay during the restriction period.
Check what survives: non-solicits, confidentiality duties, and trade-secret claims usually remain even where covenants are banned.
Ask counsel one question in writing: does the law at signing or the law at enforcement control your agreement?

The federal rule banning most non-competes was vacated by a district court in 2025 and remains in litigation, so it is not in effect nationwide. Read the non-compete entry and the non-solicit entry, and treat any blog summary as a lead, not as the rule.

What changed, and what stayed the same

State bans keep expanding. Several states void covenants by statute, and some restrict them for low-wage or non-exempt workers. Confirm your state’s current text before quoting a ban.
Thresholds and notice rules tighten. Some states condition enforcement on advance notice, income levels, or paid leave during the restriction.
Courts narrow rather than enforce. Many rewrite an overbroad clause to a reasonable scope; a few void it entirely, which can also remove the injunction basis.
Non-solicits remain the workhorse. Client and employee non-solicits are enforced more readily than competition bans.
Trade-secret claims replace covenants. Where covenants shrink, employers sue on secrecy and solicitation instead.
What did not change: your general skill, training, and public knowledge remain yours, in every state.

Practical consequence: read the confidentiality agreement and the non-solicit even when the non-compete is unenforceable, and check both states if you are moving. Re-check the map close to any signing date, because this area changes within a single year.

Signing decisions in a moving regime

Do not sign on the assumption that a future ruling will rescue you. Four written moves before signature:

Ask for the clause pre-offer. If it is not shared until signing, ask why and get a deadline to review it.
Negotiate the four levers: duration, geography, the named client or competitor list, and carve-outs for public postings, inbound applicants, and prior-role clients.
Ask for paid leave during the restriction. Garden leave makes enforcement expensive for the employer, which is exactly the point.
Document your background IP before joining: dated portfolio, frameworks, and methods, listed in the agreement as pre-existing.

If the clause is void in your state, ask for it to be deleted in writing rather than kept with a saving clause. Keep every dated copy of what you signed, what you asked for, and what they answered; the record is what a later dispute reads. Where the clause is contested, the fee and venue terms decide the cost of fighting; see the application tracker for the dates that bound the restriction period.

Clause feature	What to negotiate in 2026	Why it matters
Duration	Shorter, with the clock start stated	Start at separation versus at notice can change months
Geography and named list	Named competitors or accounts only	Open-ended scope is the part courts narrow or void
Pay during restriction	Garden leave or stand-down pay	Some states condition enforcement on it, and it deters suits
Carve-outs	Public postings, inbound applicants, prior clients	Non-solicits are enforced where bans are not

The live rule text sits on the California job exit rules page and the Illinois job exit rules page, along with the Release of Claims definition and the hiring references non competes guide hub. Confirm there before you put a date or a dollar amount in writing.

Frequently Asked Questions

Is the FTC non-compete ban in effect right now?: No. The rule was vacated by a federal district court in 2025 and remains in litigation, so there is no nationwide ban. State law controls, and state rules change within a single year, so confirm your state before relying on any summary.
Which law applies if I signed in one state and work in another?: It depends on the choice-of-law and venue terms plus where the work happened. Ask counsel in writing whether the law at signing or at enforcement applies, and check both states on the state map before you assume a ban protects you.
Are non-solicits still enforceable where non-competes are banned?: Yes, typically. Client and employee non-solicits survive in many states that void competition bans, so read the list scope, the clock start, and the public-posting carve-out even when the non-compete is void.
Should I sign a non-compete if my state bans them?: Ask for the clause to be removed in writing instead of relying on a ban with a saving clause. A clause that is unenforceable still costs you defense fees and can delay a start date, so the clean fix is deleting it.