Noncompetes and restrictive covenants laws by state
78 bills on noncompetes and restrictive covenants in 37 jurisdictions, 13 of them enacted in 2025 and 2026. The laws come first, with what each requires, then the bills that moved most recently.
- 13 laws enacted in 2025 and 2026, in 13 states. Most: Arkansas (1), Colorado (1), Indiana (1).
- 78 bills in 37 jurisdictions, 2 of them in Congress. Latest action 16 October 2026.
Updated 2 November 2026LawsRecent billsBy state
Enacted in 2025 and 2026
13 laws, by state. Laws enacted before 2025 are not listed.
Arkansas
Enacted
SB 139: To clarify that a covenant not to compete agreement is unenforceable for certain licensed medical professionals.
A covenant not to compete agreement that restricts the right of a physician to practice within the physician's scope of practice is void. Physicians are defined as persons authorized or licensed to practice medicine under the Arkansas Medical Practices Act or authorized to practice osteopathy under Arkansas Code § 17-91-101 et seq.
Indiana
Enacted
SB 475: Physician noncompete agreements.
Beginning July 1, 2025, a physician and an employer may not enter into a noncompete agreement. A referring physician may not receive compensation or an incentive from a health care entity or another physician in the same health care network for referring a patient.
Took effect 1 July 2025
Iowa
Enacted
HF 2254: A bill for an act relating to the prohibition of noncompete clauses in certain employment contracts entered into by the university of Iowa hospitals and clinics, and including effective date provisions.
The University of Iowa Hospitals and Clinics must develop a policy prohibiting noncompete clauses in employment contracts with advanced registered nurse practitioners, licensed practical nurses, pharmacists, physicians, physician assistants, and registered nurses. This applies to all employment contracts entered into, extended, or renewed on or after the effective date.
Louisiana
Enacted
HB 315: CONTRACTS: Provides relative to noncompete contracts or agreements for interns and apprentices
Amends Louisiana law to prohibit noncompete contracts or agreements for interns and apprentices, and defines 'intern' as a student learner participating in an internship authorized and regulated by state education board provisions.
Maine
Enacted
LD 2200: An Act To Prohibit Noncompete Clauses For Health Care Professionals As Recommended By The Commission To Evaluate The Scope Of Regulatory Review And Oversight Over Health Care Transactions That Impact The Delivery Of Health Care Services In The State
An employer must not require or permit a health care practitioner to enter into a noncompete agreement if the health care practitioner is employed by an entity in which that health care practitioner does not have an ownership interest.
Maryland
Enacted
HB 1016: Noncompete and Conflict of Interest Clauses - Licensed Architects - Employer Workforce Relocation and Out-of-State Employers
Employers must not enforce noncompete or conflict of interest provisions that restrict employees from entering new employment or becoming self-employed in the same or similar business. This applies to employees of licensed architects employed by employers that on the enforcement date do not have the majority of employees report to a primary work site in the State or do not have their principal place of business in the State.
Took effect 1 October 2026
New Hampshire
Enacted
SB 402: eliminating certain non-compete agreements for physician associates.
Any contract or agreement creating terms of partnership, employment, or other professional relationship with a physician associate licensed by the board of medicine must not contain restrictions on the right to practice in any geographic area for any period of time after termination. This applies only to new contracts or renewals entered into 60 days after the act's effective date.
Took effect 7 July 2026
South Dakota
Enacted
HB 1180: ensure the validity of non-compete agreements in the context of jointly owned business entities.
Parties to a governing document of a business entity or a contract for purchase, sale, or transfer of an ownership interest may agree that an owner shall not engage, directly or indirectly, in the same or similar type of business conducted by the entity during the owner's period of ownership, within the specified geographic area, for a period not exceeding three years from the date of transfer.
Took effect 1 July 2026
Utah
Enacted
SB 111: Veterinary Post-employment Amendments
On or after May 6, 2026, a person and a veterinarian may not enter into a veterinarian non-compete agreement unless the veterinarian has at least a 5% ownership interest in the person's business. A person and a veterinarian may not enter into a nondisclosure clause or nonsolicitation agreement on or after May 6, 2026.
Took effect 6 May 2026
Virginia
Enacted
SB 170: Protection of employees; covenants not to compete, discharged employees.
Took effect 1 July 2026
Washington
Enacted
HB 1155: Prohibiting noncompetition agreements and clarifying nonsolicitation agreements.
All noncompetition covenants are void and unenforceable regardless of when entered into. Employers must not enforce, attempt to enforce, threaten to enforce, represent that employees are subject to, or enter into noncompetition covenants with employees or workers. By October 1, 2027, employers must make reasonable efforts to provide written notice to current and former employees and independent contractors that their noncompetition covenants are void and unenforceable.
Takes effect 30 June 2027
Wyoming
Enacted
SF 107: Noncompete agreements prohibited.
Any covenant not to compete that restricts a person's right to receive compensation for skilled or unskilled labor is void, except for covenants in business sale contracts, those protecting trade secrets, those recovering employee training expenses for employees serving less than two years, and those involving executive and management personnel. Covenants not to compete in physician employment agreements are void, though physicians may disclose continuing practice and contact information to patients with rare disorders.
Bills that moved most recently
The 25 open noncompetes and restrictive covenants bills with the latest action. The Intellectual Property Tracker follows all 78.
New York S 10722: Prohibits healthcare non-compete agreements and certain restrictive covenants
What it would do: Prohibits employers from seeking, requiring, or enforcing non-compete agreements with covered healthcare workers, including physicians, nurses, dentists, and other licensed practitioners. Allows covered healthcare workers to sue for violations and recover liquidated damages up to ten thousand dollars, lost compensation, and attorney fees.
In committee
Congress H.R. 10215: Workforce Mobility Act of 2026
What it would do: Prohibits noncompete agreements between employers and employees, with exceptions for business sales and partnership dissolutions. Enforces the prohibition through the FTC and Department of Labor, allows private lawsuits, and requires employers to post notice of the law.
In committee
Pennsylvania HB 2558: An Act prohibiting enforcement of covenants not to compete in broadcast employment agreements.
What it would do: Prohibits enforcement of covenants not to compete in broadcast employment agreements that restrict an employee's movement to another employer or performance of services within a geographic area, effective 60 days after enactment, for contracts entered into or renewed after that date.
Passed chamber
Pennsylvania SB 142: An Act prohibiting enforcement of covenants not to compete in broadcast employment agreements.
What it would do: Prohibits enforcement of covenants not to compete in broadcast employment agreements, declaring such covenants void and unenforceable when they restrict a broadcast employee's movement to a new employer or performance of services within a geographic area. Voids any purported waivers of this prohibition.
Passed committee
Michigan HB 6119: Labor: fair employment practices; certain noncompete agreements for physicians; prohibit. Amends sec. 4a of 1984 PA 274 (MCL 445.774a).
What it would do: Prohibits employers with annual revenue exceeding $2,000,000,000 or their subsidiaries from obtaining noncompete agreements with physicians, except agreements restricting employment only to other employers meeting that revenue threshold. Voids existing noncompete agreements between such employers and physicians that violate this prohibition.
In committee
Missouri HB 2184: Prohibits noncompete clauses in physician employment contracts
In committee
Missouri HB 3427: Establishes standards in regards to covenants not to compete
What it would do: Defines covenants not to compete and voids them as unenforceable when applied to employees paid hourly wages, regardless of time-based or geographic limitations.
In committee
South Carolina H 4767: Physician Noncompete Contract Prohibition
What it would do: Prohibits noncompete clauses in physician contracts in South Carolina and declares them void as against public policy. Allows employers to recoup relocation and signing bonuses under specified conditions and to protect trade secrets and confidential business information.
Passed chamber
New York A 10981: Prohibits non-compete agreements for certain medical professionals
What it would do: Prohibits employers from seeking or enforcing non-compete agreements with physicians, physician assistants, chiropractors, dentists, nurses, pharmacists, and other specified licensed health professionals. Allows covered professionals to sue for violations and recover liquidated damages up to ten thousand dollars, attorney fees, and other relief.
In committee
Maryland SB 900: Noncompete and Conflict of Interest Clauses - Licensed Architects - Employer Workforce Relocation and Out-of-State Employers
What it would do: Declares noncompete and conflict of interest provisions null and void for employees of licensed architects employed by employers that on the enforcement date do not have the majority of employees in Maryland or lack principal place of business in Maryland, and for certain other low-wage and healthcare employees.
Passed chamber
Connecticut HB 5492: An act concerning limitations on the use on noncompete agreements.
What it would do: Limits enforcement of noncompete and exclusivity agreements for workers earning below specified wage thresholds and establishes conditions for enforceability for higher-paid workers, effective October 1, 2026. Allows workers and the Attorney General to bring civil actions for violations.
Passed committee
Rhode Island SB 2160: An act relating to labor and labor relations -- rhode island noncompetition agreement act
What it would do: Prohibits noncompetition agreements against employees classified as nonexempt under the Fair Labor Standards Act, interns, employees age 18 or younger, low-wage employees, and employees earning less than $125,000 annually, except in business sale transactions. Creates civil action for employers against employees who violate trade secret protection agreements.
Passed chamber
Massachusetts H 2118: An Act relative to noncompetition agreements in the Commonwealth
What it would do: Amends Section 24L of Chapter 149 of the General Laws to require that noncompetition agreements' consideration be reasonably related to garden leave clause requirements and specified in the agreement.
Passed committee
Vermont H 205: An act relating to agreements not to compete
What it would do: Voids and makes unenforceable all noncompete agreements between franchisors and franchisees, and between employers and employees earning less than $100,000 annually, with limited exceptions for business sales, partnership dissolutions, and severance agreements with reasonable time limits.
Floor vote
Kentucky HB 813: AN ACT relating to contracts.
What it would do: Prohibits employers from entering into, enforcing, or threatening to enforce non-compete agreements with employees earning less than $2,000 average weekly earnings, including interns and independent contractors. Allows covered employees to sue for violations and establishes civil penalties of $1,000 to $10,000 per violation.
In committee
Utah HB 203: Non-Compete Amendments
What it would do: Amends Utah non-compete agreement law to prohibit enforcement against nonexempt employees, students, minors, employees earning under $155,000, those terminated in reductions in force, and independent contractors. Requires employers to provide non-compete agreements with job offers and 14 days advance written notice.
Floor vote
Georgia SB 559: "Fair Business Practices Act of 1975"; any person from facilitating noncompete agreements between residential rental property owners or managers, including by use of algorithmic coordinating functions; prohibit
What it would do: Prohibits any person from facilitating noncompete agreements between residential rental property owners or managers, including through algorithmic coordinating functions. Prohibits rental property owners or managers from setting rental prices, lease terms, or occupancy levels based on software or algorithmic recommendations.
In committee
Georgia HR 592: House Study Committee on Noncompete Clauses in Physician Contracts; create
What it would do: Creates a House Study Committee on Noncompete Clauses in Physician Contracts composed of five House members appointed by the Speaker to study the effects of noncompete clauses on patient care and Georgia's healthcare system and recommend any necessary legislation by December 1, 2026.
Passed committee
Mississippi HB 500: Contracts; noncompete provisions in health care provider contracts are void and unenforceable.
What it would do: Voids and makes unenforceable any restriction in contracts with Mississippi-licensed health care providers that limits their right to practice in any geographic area for any period after termination of partnership, employment, or professional relationship, effective July 1, 2026.
In committee
Arizona HB 2361: employers; contracts; noncompete clause; prohibition
What it would do: Prohibits public and private employers from requiring current or prospective employees to agree to noncompete clauses as a condition of employment. Applies to contracts entered into on or after the effective date.
In committee
Indiana SB 132: Restriction on noncompete agreements.
What it would do: Prohibits employers and employees from entering into noncompete agreements if the employee's annual compensation is less than $150,000. Any such agreement is void and unenforceable. The restriction applies to agreements entered into on or after April 1, 2026.
In committee
Vermont H 334: An act relating to limiting employer restrictions on individuals separating from employment
What it would do: Prohibits employers from enforcing noncompete agreements with employees, with exceptions for business sales and partnership dissolutions. Restricts stay-or-pay provisions requiring employee repayment upon separation, with limited exceptions for voluntary agreements with reasonable terms.
Introduced
New Jersey A 1829: Prohibits non-compete clauses.
What it would do: Prohibits employers from seeking, requiring, or enforcing non-compete clauses against most workers, with exceptions for senior executives earning at least $151,164 annually and bona fide business sales. Declares no-poach agreements void and allows workers to sue for violations.
In committee
New York A 1361: Relates to restrictive covenants between employers and employees with respect to agreements not to compete
What it would do: Adds Labor Law section 191-d establishing requirements for non-compete agreements between employers and employees, including mandatory written disclosure 30 business days before employment or severance, limiting restrictions to protecting trade secrets and employee's specific services, and prohibiting enforcement if employer terminates without good cause.
In committee
Massachusetts S 1336: An Act relative to banning noncompetition agreements in the Commonwealth
Passed committee
Noncompetes and restrictive covenants laws, state by state
- Massachusetts5 bills
- Indiana4 bills, 1 enacted
- Maryland4 bills, 1 enacted
- Missouri4 bills
- New York4 bills
- Connecticut3 bills
- Iowa3 bills, 1 enacted
- Kentucky3 bills
- Michigan3 bills
- New Hampshire3 bills, 1 enacted
- New Jersey3 bills
- South Carolina3 bills
- Arizona2 bills
- Georgia2 bills
- Kansas2 bills
- Mississippi2 bills
- Pennsylvania2 bills
- Rhode Island2 bills
- Congress2 bills
- Utah2 bills, 1 enacted
- Virginia2 bills, 1 enacted
- Vermont2 bills
- Wisconsin2 bills
- Arkansas1 bill, 1 enacted
- Colorado1 bill, 1 enacted
- Florida1 bill
- Hawaii1 bill
- Idaho1 bill
- Louisiana1 bill, 1 enacted
- Maine1 bill, 1 enacted
- Ohio1 bill
- Oregon1 bill
- South Dakota1 bill, 1 enacted
- Tennessee1 bill
- Texas1 bill
- Washington1 bill, 1 enacted
- Wyoming1 bill, 1 enacted
Questions
Which states have noncompetes and restrictive covenants laws?
States that enacted noncompetes and restrictive covenants laws in 2025 and 2026: Arkansas (1), Colorado (1), Indiana (1), Iowa (1), Louisiana (1), Maine (1), Maryland (1), New Hampshire (1), South Dakota (1), Utah (1), Virginia (1), Washington (1) and Wyoming (1). Laws enacted before 2025 are not listed here.
Which states have the most noncompetes and restrictive covenants bills?
Massachusetts (5), Indiana (4), Maryland (4), Missouri (4) and New York (4). In all, 78 bills in 37 jurisdictions, the latest action on 16 October 2026.
What do noncompetes and restrictive covenants bills cover?
Noncompete, nonsolicitation and other restrictive covenants in employment or business agreements. Each enacted law above has a line on what it requires.
Is this legal advice?
No. Which bills count as noncompetes and restrictive covenants bills, and the line on what each law requires or each bill would do, are drafted by software and not reviewed by an attorney. Every bill links to the legislature’s own record: read the text before relying on it. The list covers bills from the 2025 and 2026 sessions.
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