The current national answer
There is no durable national yes-or-no chart for non-competes. Enforceability can turn on the governing state, the location of the worker or business, the kind of relationship, when the agreement was signed, and the exact conduct the clause restricts.
The Federal Trade Commission's nationwide Noncompete Rule is not in effect and is not enforceable. The FTC's current rule-status page says a federal district court stopped enforcement in August 2024 and that the agency took steps to dismiss its Fifth Circuit appeal in September 2025. State statutes and state case law therefore remain central.
This page does not assign every state a permanent label. A static 50-state table can become wrong when a legislature, court, or agency changes the rule.
Start with the transaction type
Before researching a state, identify the relationship:
| Context | Why the distinction matters |
|---|---|
| Employment | States may ban, limit, or condition restraints involving workers |
| Sale of a business | Some statutes permit a narrower restraint tied to transferred goodwill or ownership |
| Franchise | The franchise agreement, FDD, territory, and state franchise law may interact |
| Partnership or ownership exit | Entity statutes and the sale terms may affect the analysis |
| Contractor or vendor relationship | A worker statute may define covered people more broadly than the agreement's label |
For example, California's official Business and Professions Code section 16600 states the general void rule, while section 16601 addresses a sale-of-business exception. Reading only one section can produce the wrong answer for an acquisition.
A state-specific review checklist
Use the official legislature or judiciary source in every state and record:
- who is covered by the rule;
- whether the relationship is employment, ownership, franchise, or another category;
- any compensation, notice, timing, or consideration requirement;
- whether the statute applies to agreements signed before its effective date;
- what conduct, duration, geography, and customers the clause reaches;
- the governing-law, venue, and conflict-of-laws provisions;
- available remedies and any statutory fee-shifting rule; and
- whether a later amendment or controlling decision changed the text's application.
The franchise non-compete state-by-state guide applies this method to franchise and acquisition documents without pretending that one nationwide score stays current.
Do not treat contract wording as the legal result
A clause can be written broadly and still face statutory limits. A narrow clause can also create meaningful business risk before a court rules, particularly if a party seeks emergency relief. The practical question is therefore two-part: what does the text purport to prohibit, and what does current law allow in this transaction?
Preserve the signed agreement, amendments, notices, sale documents, and facts about the work or business at issue. Have counsel licensed in the relevant jurisdiction apply the current law before signing, enforcing, or acting in conflict with the restraint.
Review the actual clause
Inkvex can quote the restraint, identify the stated duration, territory, restricted activity, covered customers, governing law, venue, and connected confidentiality or non-solicitation terms. That is a first-pass for your attorney. It is not a prediction that a court will enforce or reject the clause.
Start a first analysis or review the California sale-of-business framework.
Inkvex provides legal information, not legal advice. Use qualified counsel for a current state-specific enforceability analysis.
Build a dated state research record
For each relevant state, save the current statute or official code page, effective date, transaction category, and controlling or useful case authority identified by counsel. Note whether the question involves employment, sale of a business, franchise, partnership, or another relationship. Record the employee's or seller's location, work location, customer territory, chosen law, forum, and when the agreement was signed.
Do not maintain a static red-yellow-green map as a substitute for that record. Legislation, effective dates, and case law change, and a short label cannot capture exceptions or cross-border disputes. The deliverable should be the actual clause, factual map, current sources, and questions for qualified counsel.
Read the clause guides behind this article
The article explains the situation. These clause guides break down the exact provisions that usually create the leverage, risk, or negotiation pressure inside the contract.
Go deeper
Read the guide, then move into the real workflow, pricing, audience page, and glossary that support the next decision.
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This article is for informational purposes only and does not constitute legal advice. For high-stakes agreements, consult a qualified attorney.