What the new non-compete rules mean for employers

Few employment documents have changed as quickly as the non-compete. Over the last three years regulators, legislatures and courts have narrowed what employers may ask of departing staff — and the direction of travel is clear.

I. What has changed

Several states now prohibit non-competes for employees below a salary threshold, require advance notice before signing, or limit duration to twelve months. Courts are also more willing to strike an overbroad clause entirely rather than rewrite it.

II. What still works

Confidentiality agreements, carefully drawn non-solicitation clauses and garden-leave provisions remain enforceable in most jurisdictions, and often protect what an employer actually cares about.

“The best restrictive covenant is the narrowest one that protects a legitimate interest.”

III. What to do now

• Audit existing agreements by state and salary band.
• Replace blanket non-competes with targeted non-solicits.
• Document the legitimate business interest each clause protects.

If you would like us to review your templates, our employment team offers a fixed-fee audit.