Non-compete explained
Don't sign blind.
A non-compete restricts where and for whom you can work after leaving. Enforceability turns on state law, duration, geographic scope, and whether you got separate consideration for signing.
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What it usually means
A non-compete is a restrictive covenant that prevents you from working for a competitor for a defined period, in a defined geography, after leaving the employer. Often paired with non-solicitation and non-recruitment clauses.
Why it matters before signing
Non-competes can quietly limit your next job. Several states ban most non-competes outright (California, Minnesota, North Dakota, Oklahoma). Others cap by income threshold or industry. Enforceability is a strong state-by-state question.
State variation matters (most of all)
- Outright bans: Cal. Bus. & Prof. Code § 16600, Minn. Stat. § 181.988, N.D. Cent. Code § 9-08-06, Okla. Stat. tit. 15, § 219A.
- Income-threshold restrictions: Colorado, DC, Illinois, Maine, Maryland, NH, Oregon, Rhode Island, Virginia, Washington. Colo. Rev. Stat. § 8-2-113, Wash. Rev. Code § 49.62.
- Garden leave required: Massachusetts. Mass. Gen. Laws ch. 149, § 24L.
What to ask before signing
- What state law governs the agreement, and what is my actual work state?
- Is the duration reasonable for the role and the consideration?
- Is the geographic scope tied to where the company actually does business?
How Dang catches it
Dang's employment engine runs duration, geography, and state-by-state enforceability checks against every non-compete clause. California's ban triggers a HIGH-severity finding for a CA-resident worker. Massachusetts' garden-leave requirement triggers a Tier A check for missing garden leave in Massachusetts.
Frequently asked questions
Are non-competes enforceable everywhere?
No. Several states ban most non-competes; others restrict by income threshold; enforcement varies even within enforcing states.
What's a reasonable duration?
Most courts treat 6-12 months as reasonable. Beyond 18 months draws scrutiny. Massachusetts caps at 12 months by statute.
What is garden leave?
Paid leave during the non-compete period. Massachusetts requires garden leave or mutual consideration to make a non-compete enforceable.
Sources & further reading
- Cal. Bus. & Prof. Code § 16600 · California ban
- Minn. Stat. § 181.988 · Minnesota ban
- Colo. Rev. Stat. § 8-2-113 · Colorado income threshold
- Mass. Gen. Laws ch. 149, § 24L · Massachusetts garden-leave
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English. For consequential decisions, consult a licensed attorney in your state.