Three states – Illinois, Nevada, and Oregon – have passed laws limiting or outlawing non-compete agreements. These state legislative limits are continuing to spread across the states. There are now more states with limits than states without limits. There are three types of state laws:
- Allowing the agreements but with limitations,
- Not allowing employers to use agreements for low wage workers,
- Not allowing the agreements at all. (This is the law in California and Oklahoma.)
Employers must check state law where the employee is working before entering into such an agreement. Colorado, Idaho, and Utah allow agreements with limits. Arizona, New Mexico, and Wyoming have no statutes.
Employers Council has information on state statutes so that employers do not create unenforceable agreements. Contact us, we can help.