Noncompete Law Splinters Across States as Federal Rule Dies

NewsData.io · United States · Sep 21, 2026

With the FTC's proposed nationwide noncompete ban struck down and appeals abandoned, state legislatures have moved in sharply divergent directions — banning noncompetes outright (Minnesota, Wyoming, Washington), setting compensation thresholds (Illinois), targeting health care providers (Pennsylvania, Texas, Virginia), or strengthening enforcement (Florida's CHOICE Act). Multistate employers now face a patchwork of eligibility rules, notice requirements, compensation thresholds, and effective dates that vary by state. Legislatures are also scrutinizing functional equivalents like training-repayment agreements and forfeiture clauses — meaning the label matters less than the economic effect. Staffing firms and their clients placing workers across multiple states need jurisdiction-by-jurisdiction compliance review rather than a single national agreement.