The report states that, because of the potential issues presented by some non-competes, there is a growing movement at the state level to limit the misuse of the agreements, and several states ban the agreements outright for certain sectors and occupations.
Explore This IssueOctober 2016
This year, Hawaii banned non-compete agreements for technology jobs, and New Mexico banned them for healthcare jobs. Others have taken steps to limit the scope of non-competes. Oregon recently banned agreements longer than 18 months, while Utah limited the agreements to one year.
Additionally, some states either completely ban or limit their applicability:
- California: Usually not enforceable, with narrow exceptions.
- Montana: Only permitted in certain statutorily enumerated circumstances.
- North Dakota: Not likely to be enforceable.
- Oklahoma: Not enforceable.
- Oregon: Only permitted in certain statutorily enumerated circumstances and are void unless in strict compliance with statutory requirements.