Employment · United States

Is Your Non-Compete Actually Enforceable? It Depends Entirely on Your State Now

Signing a non-compete doesn't automatically mean you're locked out of your industry for years. Whether that clause holds up depends almost entirely on which state you work in — and the rules have shifted significantly since the FTC's attempt at a nationwide ban collapsed.

The federal ban is officially, formally dead

In April 2024, the FTC finalized a rule banning nearly all non-competes nationwide. A Texas federal court blocked it in August 2024 (Ryan LLC v. FTC), and in September 2025 the FTC withdrew its appeal entirely. As of February 12, 2026, the FTC formally removed the rule from the Code of Federal Regulations — there is no realistic prospect of it returning as written. The FTC has shifted to case-by-case enforcement under Section 5 of the FTC Act instead, targeting specific agreements it considers unfair — it has already forced one company to release around 1,800 employees from overly broad non-competes, so the agency isn't entirely out of this space, just no longer pursuing a blanket rule.

The three-tier state landscape

One major upcoming shift worth knowing: Washington State enacted a near-total ban on employee non-competes that voids existing agreements effective June 30, 2027 — a bigger change than a simple salary threshold, and a sign this landscape keeps moving.

What to actually check on your own agreement

If you believe your non-compete is void

Before assuming you're free to act, get this confirmed by an employment attorney in your state — the stakes of guessing wrong are high. If your agreement is clearly void under your state's statute and your employer still threatens legal action, a declaratory judgment action (asking a court to formally rule the clause unenforceable) can pre-empt the dispute — employers are often reluctant to litigate a case that could create an unfavorable precedent affecting every other employee's agreement.

See also: non-competes aren't the only area where your rights hinge on which state you're in — your state probably has its own data-privacy law now, not just California's CCPA.