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Wednesday, May 6, 2026

Noncompete agreements aren’t going anywhere. What to know if you sign one - CNN

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New York CNN —

A Texas judge late last month struck down a nationwide ban on noncompete agreements that was supposed to take effect this Wednesday.

Existing noncompete agreements will therefore now remain in place. And employers may still ask you to sign one as a condition of employment. That is, unless and until a higher court decides otherwise, or Congress passes a law prohibiting it. But, if that does happen, it could take years.

In the meantime, if you’re working under a noncompete agreement — or are considering signing one — here’s what you need to know and do, because in some cases the agreement may not be enforceable.

1. Understand what your noncompete requires

Generally speaking, noncompetes prohibit you from working for your employer’s competitors within a given geographic distance for a given period of time. For example, you may be prohibited from working for a competitor within 50 miles of your current job for a year after leaving.

Related article US judge strikes down Biden administration ban on worker ‘noncompete’ agreements

So, understand exactly how you will be constrained when you leave your current job — whether you quit, get laid off or are fired for cause — and what, if anything, you are getting in exchange for signing away your right to work where you wish.

Also understand how the location of competitors is defined, because the agreement might preclude you from working at a company within a given distance not just from...



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