Non-compete agreements are coming under increased scrutiny across the United States with several states and municipalities implementing new restrictions on these agreements in the employment context. These changes have taken many forms all with an eye towards making non-competes harder (and in some cases illegal) to enforce especially against lower earning workers.
While one jurisdiction (the District of Columbia) imposed a total ban, others took on various changes to their laws concerning non-compete agreements that can be categorized as follows:
EARNINGS THRESHOLDS
Jurisdictions are increasingly adding minimum income thresholds for non-compete agreements or are finding other ways to restrict the use of non-competes with lower earning workers. The minimum income thresholds in place range from approximately $60,000 to $100,00.
In 2022, both Illinois and Oregon implemented specific earnings thresholds, joining Maine, Maryland, New Hampshire, Rhode Island, Virginia and Washington in prohibiting non-compete agreements with employees who earn under a specified dollar amount on a weekly, monthly or annual basis. In Illinois, employers are now prohibited from entering into a non-compete agreement with any employee earning less than...
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