The Northern District of Texas’s nationwide ban on the Federal Trade Commission’s noncompete rule isn’t a complete bar to government enforcement. The rule sought to curb unfair methods of competition and would have voided employees’ noncompete provisions. It required employers to send notice that noncompete agreements are no longer enforceable.

Meanwhile, states’ attorneys general have ramped up their own enforcement efforts targeting noncompetes under their respective unfair and deceptive practices acts. All 50 states have unfair, deceptive, and abusive practices or UDAP statutes, which permit their attorneys general to “investigate any unfair or deceptive acts or practices affecting consumers in their states.”

More states are adopting legislation that bans noncompete agreements entirely. While the Texas federal court has (at least absent an appeal) prevented federal action against employers, it does nothing to prevent state scrutiny and enforcement.

California, Minnesota, North Dakota, and Oklahoma have entirely banned all noncompetes. California and Minnesota proactively ban noncompetes whether signed within, or outside of, the state and regardless of choice of law provisions attempting to circumvent their states’ borders.

Many other states have banned noncompetes entirely for certain classes of workers—such as health care—but with exceptions for high-wage earners...

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