Earlier this year, New York Gov. Kathy Hochul vetoed a bill that would've banned noncompetes and added the state to a short list of those prohibiting noncompetes.
Here are the five states that have virtually banned all noncompetes, as laid out by attorneys from the law firm Constangy, Brooks, Smith & Prophete on Aug. 29 in JDSupra:
1. California
California, a state that has banned noncompetes since the 1800s, passed a law in September extending the ban to apply to contracts outside of the state.
2. Colorado
In 2022, Colorado banned all noncompetes except for "highly compensated workers." Noncompetes that were entered on or after Aug. 10, 2022, cannot be used against workers who earn less than $112,500 in 2023.
3. Oklahoma
Noncompetes are unenforceable in Oklahoma.
4. North Dakota
Noncompetes are unenforceable in North Dakota.
5. Minnesota
Minnesota has prohibited post-employment noncompetes, but agreements signed on or before July 1, 2023, remain enforceable.