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What States Are Non Compete Agreements Illegal

Other states, most recently Washington, Maryland and Massachusetts, have begun to follow the more favorable approach to Louisiana employees to competitive compensation by limiting situations where an employer can legally restrict a former employee`s business. In 2017, Illinois banned non-compete clauses against employees earning less than $13 an hour. [44] [45] Just because a State generally applies these agreements does not mean that all non-compete obligations are applied. Any agreement could still be declared invalid if a court finds that the restrictions imposed are not appropriate. Often, courts will not enforce non-compete obligations if the duration of the non-compete obligation is too long, if the geographic scope within which the employee is prevented from working is too great, or if the types of prohibited work are too broad. In 2018, non-compete obligations cover 18% of workers in the United States, which equates to a 38% decrease in workers. [When?] While higher-wage workers are more common, non-competitors covered 14% of workers without a university degree in 2018. [24] In March 2019, the U.S. Federal Trade Commission was under pressure from politicians, unions, and interest groups to ban non-compete clauses. One petition estimated that “one in five American workers – about 30 million – is bound by such an agreement.” [25] However, a coherent approach can be found in the not too distant future.

While the various state regulations in the area of barriers to competition are by no means a new phenomenon, there is now reason to believe that the federal government could pass laws in this area to promote uniformity. . . .