The most significant legal development of 2024 regarding non-compete agreements was the Federal Trade Commission’s (FTC) attempt to implement a near-total ban on such agreements in the United States. In April 2024, the FTC moved forward with rules to prohibit non-compete agreements.

The new rule aimed to ban nearly all new non-compete agreements and invalidate most existing ones. Exceptions were limited to specific high-level employees with access to sensitive information. However, courts in Texas and Florida have since issued injunctions halting enforcement of the ban, and it is not currently expected to take effect in its current form.

States with Non-Compete Bans or Limitations

Despite the federal ban being on hold, a majority of the U.S. workforce is employed in states that impose varying restrictions on non-compete agreements.

Four states—California, Oklahoma, Minnesota, and North Dakota—have near-total bans on non-compete agreements, with limited exceptions.

Other states impose minimum salary requirements, effectively prohibiting non-compete agreements for workers earning below the specified threshold. The state minimums include:

• Colorado: $127,091 per year
• Illinois: $75,000 per year
• Maine: $60,240 per year
• Maryland: $46,800 per year
• New Hampshire: $30,160 per year
• Oregon: $116,427 per year
• Rhode Island: $37,650 per year
• Virginia: $73,320 per year
• Washington: $120,559 per year
• Washington, D.C.: $150,000 per year

Some states have enacted partial bans or restrictions applicable to specific industries. For example, 20 states have imposed limitations on non-competes for healthcare professionals, including nurses and doctors. Louisiana, Maryland, and Pennsylvania have recently enacted laws restricting non-competes as of 2025.

No-Poach Agreements

In addition to non-compete agreements, both federal and state laws heavily restrict the use or implementation of “no-poach” agreements between firms.

A no-poach agreement is an arrangement between companies in which they agree not to recruit or hire employees from one another. These agreements are generally considered illegal and anti-competitive, as they restrict employee mobility and suppress wages by preventing workers from leaving for better-paying jobs at competing firms.

Certain unlawful forms of no-poach agreements involve multiple competing companies collectively enforcing non-compete clauses. When competitors implement non-compete agreements—particularly if they apply to employees without access to proprietary information—and then mutually honor those restrictions, they can effectively create a no-poach environment. This results in workers being unable to transition between jobs within their industry, despite lacking any specialized knowledge that would typically justify a non-compete clause.

Schneider Wallace Cottrell Konecky LLP investigates instances of no-poach agreements. If you believe you have been affected by such an agreement or have been informed that your employer has a no-poach agreement with a competing firm, please contact us for a free and confidential legal consultation.

State Non-Compete and No-Poach Legal News

In January 2025, the attorneys general of New York and New Jersey announced a settlement with multiple staffing companies regarding alleged no-poach agreements between firms. The companies in question provided staffing services for security and cleaning personnel in commercial buildings. Following a joint investigation, the attorneys general determined that these firms had entered into agreements restricting competition for employees within their industry.

New York Attorney General Letitia James stated:

“No-poach agreements are illegal and unfairly limit employees’ opportunities to grow their careers. I will continue to go after companies that use these anti-worker agreements and ensure every worker has a fair shot at better working conditions. I thank Attorney General Platkin and our partners at the FTC for their collaboration in this investigation, which will help workers across both of our states.”

Non-Compete and No-Poach Law Firm

If you believe you have been subjected to an illegal agreement or have questions about your rights, we encourage you to schedule a consultation with one of our Schneider Wallace Cottrell and Konecky employment attorneys. Schneider Wallace Cottrell Konecky LLP is a national law firm representing employees in a wide range of employment law cases, including class action lawsuits involving unpaid wages, overtime pay, and commissions.

Contact us at 1-800-689-0024.