Are Non-Competes Still Enforceable in 2026?

Short answer (US practice): There is no federal non-compete ban. The FTC's 2024 rule was set aside by a court, and in September 2025 the agency dropped its appeals, so whether your non-compete holds up depends on your state. A handful of states void most non-competes outright, several allow them only above a pay threshold, and 2026 brought new limits in Virginia and a retroactive ban in Washington that starts in mid-2027. Before you sign, read three things in the clause — how long, how far, and what work it covers — and check your state's current rule.

1. What happened to the FTC ban

• The FTC's Non-Compete Clause Rule was issued in 2024 and blocked in federal court on the ground that the agency lacked authority to issue it.
• On September 5, 2025, the Commission voted 3–1 to dismiss its appeals (Ryan, LLC v. FTC, 5th Cir.; Properties of the Villages v. FTC, 11th Cir.) and accept the vacatur.
• The FTC has since said it will look at non-competes case by case rather than through a blanket rule.

What this means for you: a non-compete you're asked to sign today is judged under state law, not a federal ban.

2. States that void most non-competes

Per a July 2026 overview by Foley & Lardner, broad prohibitions include:

Most bans keep narrow exceptions (for example, the sale of a business), so "banned" rarely means "every restriction is void."

3. What changed in 2026

• Virginia (in effect July 1, 2026). SB 170, signed April 13, 2026, means an employer that fires you without cause can enforce a non-compete only if it provides severance or another payment — and that payment must be disclosed in the agreement when you sign. It applies to agreements entered into, amended, or renewed on or after July 1, 2026. A separate law, HB 627, also makes non-competes with most licensed health care professionals unenforceable (except in a sale of a business).
• Washington (in effect June 30, 2027). HB 1155, signed March 23, 2026, bans non-competes for employees and independent contractors and removes the old pay thresholds. It reaches agreements signed before that date too. Confidentiality, narrow non-solicitation and certain sale-of-business covenants remain allowed, and by October 1, 2027 employers must make reasonable efforts to tell current and former workers, in writing, that non-competes still in effect are void.

4. Pay-threshold states

Several places allow non-competes only for workers above a set income, usually adjusted each year — including Colorado, Illinois, Oregon and Washington D.C. (Washington State until its ban takes effect). Thresholds change; check the current figure for your state rather than a number in an old article.

5. How to read a non-compete before you sign

1. Duration. How long after you leave does it last? Longer periods get more scrutiny in most states.
2. Geography. A city, a state, "anywhere the company does business"? The wider it is, the more it restricts you.
3. Scope of work. Does it cover the exact role, or "any competing business"? Vague scope is the most common problem.
4. Trigger. Does it apply even if you're let go without cause? In Virginia, for agreements signed or renewed from July 1, 2026, that requires severance or another payment disclosed when you sign.
5. Governing law. Which state's law does the contract pick? It can matter as much as where you live. Some states — California, Minnesota and Washington among them — don't let an out-of-state choice of law override their rules for people who live and work there.
6. What you can ask for. A shorter period, a named-competitor list instead of "any competitor," a carve-out if you're terminated without cause, or pay during the restricted period.

Where FixMyContract fits

Upload the offer or agreement and FixMyContract points you to the non-compete and related restrictions (non-solicit, confidentiality, exclusivity), quotes the exact wording, and suggests what to ask for. It explains the contract; it doesn't replace legal advice for your state.

This guide describes US law as of September 2026 and is not legal advice.

Sources

All links checked 23 September 2026.

1. Federal Trade Commission, press release, 5 September 2025 — the 3–1 vote and the two appeals it dismissed — https://www.ftc.gov/news-events/news/press-releases/2025/09/federal-trade-commission-files-accede-vacatur-non-compete-clause-rule
2. Foley & Lardner, "Noncompete Agreements in 2026: A Federal and State Overview" (13 July 2026) — states with broad bans and their statutes, pay-threshold states, the FTC's case-by-case approach — https://www.foley.com/insights/publications/2026/07/noncompete-agreements-federal-state-overview/
3. Jackson Lewis, Washington HB 1155 (10 April 2026) — June 30, 2027 effective date, reach to existing agreements, October 1, 2027 notice — https://www.jacksonlewis.com/insights/washingtons-recently-amended-non-competition-restrictions-render-past-or-existing-covenants-unenforceable
4. Virginia SB 170 (signed 13 April 2026, in effect 1 July 2026, applies going forward) — https://www.foley.com/insights/publications/2026/04/2026-virginia-noncompete-law-what-employers-need-to-know/ · https://www.tradesecretsandemployeemobility.com/virginia-approves-sb170-expanded-restrictions-on-enforcement-of-noncompetes-take-effect-july-1-2026
5. Wyoming SF 107 (signed 19 March 2025; contracts from 1 July 2025; exceptions) — https://www.littler.com/news-analysis/asap/wyoming-bans-non-compete-covenants-some-exceptions
6. Federal Register, 12 February 2026 — formal removal of the Non-Compete Clause Rule — https://www.federalregister.gov/documents/2026/02/12/2026-02866/revision-of-the-negative-option-rule-withdrawal-of-the-cars-rule-removal-of-the-non-compete-rule-to
7. Foley & Lardner, Virginia HB 627 (health care professionals, 1 July 2026, sale-of-business exception) — https://www.foley.com/insights/publications/2026/06/new-virginia-law-prohibits-noncompete-agreements-with-health-care-professionals/

---

Keep reading

• What is a non-compete clause?Glossary
• How to review a job offerGuide