Employment

Noncompete limits every growing employer should understand in 2026

Author

I help owners resolve partner, customer and vendor conflicts with a clear plan and an honest budget.

Author

Danielle Rowe

Role

Partner, Disputes

Date

November 20, 2025

Portrait of Danielle Rowe

Employment

Topic

Many states now limit noncompetes. Confidentiality terms, customer non-solicits and careful data habits now carry most of the protection.

The ground has shifted

A noncompete that was routine five years ago may be unenforceable today, and in some states using one carries penalties.

Legislatures have narrowed noncompetes by salary thresholds, notice requirements and outright bans for certain roles. Colorado, for example, limits them to highly compensated workers and requires separate written notice. Other states have their own rules, so multi-state employers need a map.

Updating your agreements

  1. Inventory every restrictive covenant currently in use
  2. Map each employee to the state rules that apply
  3. Replace unenforceable noncompetes with narrower terms
  4. Deliver any required notices on time and keep proof
  5. Train managers on handling confidential information
The strongest protection for a customer list is a team that knows it is confidential and a system that shows it.

Alternatives that hold up

Well-drafted confidentiality agreements, reasonable customer non-solicitation clauses and access controls on sensitive data protect most businesses better than a broad noncompete ever did.

At a glance
ToolProtectsTypical limit
ConfidentialityInformationIndefinite for trade secrets
Customer non-solicitRelationshipsTwelve months, defined customers
NoncompeteMarket positionHeavily restricted by state

Questions owners ask

Are existing noncompetes void?

Not always. It depends on the state, the date signed and the role. Review them one by one.

Can we still use them for executives?

In many states, yes, subject to pay thresholds and notice rules.

General information only, not legal advice for any specific situation.

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