Non-competes are routine in the U.S. — and routinely unenforceable as written. Lawma reads yours, tells you what actually holds up in your state, and helps you respond. Lawma’s guided intake is free; the licensed attorney you choose quotes a flat fee before any work starts.
Where this stands right now
Non-competes had a turbulent two years. Here's the short version, accurately.
April 2024 — FTC final rule
The Federal Trade Commission voted 3-2 to adopt a nationwide ban on most non-competes. The FTC's own fact sheet estimated the rule would free roughly 30 million U.S. workers — about 1 in 5 — from their non-competes. Set to take effect September 4, 2024.
August 2024 — federal court blocks it
In Ryan LLC v. FTC (N.D. Tex.), a federal judge ruled that the FTC exceeded its statutory authority and set aside the rule nationwide. The rule never took effect.
2025 — FTC vacates the rule
The FTC formally vacated its 2024 final rule and shifted back to case-by-case enforcement under the existing FTC Act. The federal ban, as a single sweeping rule, is dead.
2026 — back to the states
Non-compete law is once again primarily state law. Several states (CA, ND, OK, MN, and a growing list with income thresholds) ban them outright; many others have tightened the rules sharply. Where you live and where you work matters more than ever.
We'll tell you honestly what the law in your state says — not what an out-of-state employer's template assumes.
Why this matters to you
Even where non-competes are still allowed, courts won't enforce one that's broader than necessary to protect a legitimate business interest. “You can't work anywhere in your industry, anywhere in the country, for five years” is the kind of clause employers write and courts cut down.
The question we answer for you isn't “is there a non-compete in this document?” — it's “is yours enforceable, where you live and work, in its current form, and if so, how much of it.”
What Lawma reviews
Scope of restricted activity
What work, exactly, are you barred from doing? “Any competing business” is usually overbroad. Tied to a specific role, product line, or customer set is more likely to hold up.
Duration
Six months to two years is the typical enforceable range for ordinary employees; longer terms are sometimes upheld for executives or sale-of-business non-competes. Anything further is hard to defend.
Geography
The restricted territory has to match where the employer actually does business — and where you actually worked. Nationwide is hard to enforce against a regional employee.
Consideration
Did the employer give you something in exchange? Many states now require new, separate consideration when a non-compete is signed mid-employment — continued employment alone may not be enough.
Enforceability in your state
State law trumps the contract. We tell you the rules in the state whose law actually governs your situation, not just the one named in the choice-of-law clause.
Blue-pencil vs. red-pencil
Some states will narrow an overbroad clause to make it enforceable (“blue-pencil”). Others throw the whole thing out (“red-pencil”). That alone can decide whether a borderline clause survives at all.
State-by-state, roughly
Outright ban (most workers)
California (Bus. & Prof. Code §16600 — bans almost all employee non-competes), North Dakota, Oklahoma, and (with growing exceptions) Minnesota. In these states, the default is the clause does not bind you. Sale-of-business carve-outs may still apply.
Income-threshold limits
Washington, Illinois, Colorado, Oregon, Massachusetts, and others enforce non-competes only above stated income thresholds (typically $100K–$150K+). Lower-paid workers are exempt.
Industry / role limits
Several states bar non-competes entirely for specific roles — doctors, broadcasters, lawyers, certain low-wage workers — even where the general law allows them.
Reasonableness states
The majority — Texas, Florida, New York, Georgia, and more — allow non-competes if they're reasonable in scope, duration, and geography, and protect a legitimate business interest. Courts vary a lot.
Notice + procedural rules
Several states (e.g., MA, OR, WA, IL) require advance notice, separate signing, garden-leave pay, or specific disclosures. Skipping these steps can void the whole clause.
Sale-of-business carve-out
Almost every state still allows a non-compete attached to the sale of a business — including California. If you're selling a company, expect to sign one.
This is an overview, not legal advice for your specific situation. Your reviewing attorney will tell you what your state law actually says about your contract.
Who we help
Employees handed a non-compete
At hiring, mid-employment, or as part of a separation package. We tell you what would hold up if challenged, what to push back on, and how to take a job offer at a competitor with informed eyes.
Employers drafting one
A non-compete you can't enforce is worse than no non-compete — it leaks confidence and triggers fights you lose. We'll draft something narrow enough to hold up where you actually need it.
Founders selling a business
Almost every business sale involves a non-compete on the seller. Scope, duration, and geography are negotiable — and worth real negotiation. Don't hand the next ten years of your career to a buyer's template.
Workers laid off with a clause
If you're being let go and the employer is now trying to enforce a non-compete, the playing field has shifted. Several states have new rules limiting enforcement on non-misconduct terminations. Worth knowing.
How pricing works
Your lawyer charges a pre-negotiated flat fee — typically $200 to $3,500, depending on complexity. A standard non-compete review sits at the low end; if you need response letters or pushback redlines, the price lands higher within the range. That single fee covers your attorney's work AND everything Lawma does.
For comparison, a traditional non-compete review with an employment attorney runs $400 to $900.
If you qualify for legal aid, your fee is waived. Permanently.That's a Lawma commitment.
Uploaded contracts are treated as attorney-client privileged.
Traditional-attorney fee ranges are market estimates from industry surveys; specific quotes vary by attorney, jurisdiction, and matter complexity.
Related
See contract review for the full employment agreement, and NDA review if the same document also contains confidentiality language.
Document workflow, payroll, and insurance — the infrastructure that often surrounds an employment or sale-of-business decision. Lawma earns a small fee when you use one.
Business insurance
Northstar Insure
Professional-liability and general-liability coverage for artists, designers, photographers, and small studios. Quotes in minutes.
Document workflow
Ironclad Stack
Template library, redlining, and tracked e-signature for one-sided and mutual NDAs, vendor agreements, and partnership docs. Audit-ready storage.
Intake happens on Lawma — you never hand your details to a third-party form. Lawma earns a small referral fee when you connect with a partner; we only list services that meet our review bar, and we never run ads on your case file.
Guided intake is free and privileged. Reviewed by a licensed attorney who quotes a flat fee before any work starts.
Sources: U.S. Federal Trade Commission, “Fact Sheet on FTC's Proposed Final Noncompete Rule” (April 2024) — ~30M U.S. workers, ~1 in 5; Ryan LLC v. FTC (N.D. Tex., August 2024); FTC vacatur (2025).
