Check the hire’s state law before you write a non-compete, because enforceability rules differ by state.
Key takeaways
- Washington’s non-competition law includes restrictions related to earnings, according to Washington State Department of Labor and Industries.
- Minnesota statutes declare covenants not to compete void and unenforceable, according to Minnesota Revisor of Statutes.
- Oregon allows enforcement for non-exempt employees if the employer agrees in writing to pay 50% of annual base salary plus commissions at termination or 50% of minimum salary, whichever is greater, according to Oregon Bureau of Labor and Industries.
- Massachusetts requires fair and reasonable consideration independent from employment continuation and at least 10 business days' notice for mid-employment agreements, according to Massachusetts General Court.
- Massachusetts deems geographic reach presumptively reasonable if limited to areas where the employee provided services or had material presence or influence during the last 2 years, according to Massachusetts General Court.
Washington’s non-competition agreement law governs when a non-competition agreement may be considered valid or enforceable under state law, according to Washington State Department of Labor and Industries.
Non-compete enforceability depends on state-specific statutory limits
Drafting a non-compete clause requires checking the specific jurisdiction where the hire will work, as rules vary significantly. The Washington State Department of Labor and Industries explains that one aspect to the restrictions in Washington’s non-competition law is related to earnings, according to Washington State Department of Labor and Industries.
Federal regulations also impact this landscape, though their current status is complex. The Oregon Bureau of Labor and Industries notes that the final rule was set to go into effect (barring legal challenges) 120 days after publication in the Federal Register, but on August 20, 2024, a federal judge blocked the rule from taking effect nationwide, according to Oregon Bureau of Labor and Industries. Consequently, employers cannot rely on a uniform federal ban and must instead navigate state-specific statutes.
Furthermore, the legal environment remains in flux. The Oregon Bureau of Labor and Industries states that the Federal Trade Commission (FTC) voted September 5, 2025 to dismiss pending appeals to judicial orders blocking a Biden-era rule banning noncompetition agreements, according to Oregon Bureau of Labor and Industries. This dismissal of appeals suggests that the judicial blocks on the rule may remain in place, keeping state laws as the primary source of enforceability rules.
A filled reference table of state non-compete requirements
The following table lists the six specific legal conditions tied to their respective publishers for quick verification.
| Requirement | Publisher | State | Specific Condition |
|---|---|---|---|
| Earnings aspect | Washington State Department of Labor and Industries | Washington | One aspect to the restrictions in Washington’s non-competition law is related to earnings. |
| Void status | Minnesota Revisor of Statutes | Minnesota | 2.Covenants not to compete void and unenforceable. |
| Similar work | Minnesota Revisor of Statutes | Minnesota | (3) work for another employer in a capacity that is similar to the employee's work for the employer that is party to the agreement. |
| Salary exception | Oregon Bureau of Labor and Industries | Oregon | Exceptions: In general, employers may only enforce a noncompetition agreement with an employee who is not exempt or does not meet the minimum annual salary and commission requirements when the employer agrees in writing to pay either 50% of the employee’s annual base salary plus commissions at termination or 50% of minimum salary listed above, whichever is greater, for the term of the agreement. |
| Notice requirement | Massachusetts General Court | Massachusetts | (ii) If the agreement is entered into after commencement of employment but not in connection with the separation from employment, it must be supported by fair and reasonable consideration independent from the continuation of employment, and notice of the agreement must be provided at least 10 business days before the agreement is to be effective. |
| Geographic reach | Massachusetts General Court | Massachusetts | A geographic reach that is limited to only the geographic areas in which the employee, during any time within the last 2 years of employment, provided services or had a material presence or influence is presumptively reasonable. |
Washington: earnings aspect and validity basics
This framework establishes the baseline for determining whether a clause in an offer letter holds up under state standards. When drafting for a hire located in Washington, the specific statutory conditions outlined by the state agency define the boundaries of enforceability.
One aspect to the restrictions in Washington’s non-competition law is related to earnings, according to Washington State Department of Labor and Industries.
Because the law governs validity based on these specific state standards, you should not assume that a standard non-compete form from another jurisdiction will automatically comply with Washington rules. The agency’s position is that the law determines when an agreement is considered valid, so each clause must be checked against these local criteria.
If you are managing multiple hires across different states, keep in mind that Washington’s specific focus on earnings distinguishes it from other jurisdictions. The state’s law governs validity, and one aspect of Washington’s restrictions is related to earnings, so you must tailor the clause accordingly. Do not apply a one-size-fits-all approach.
See Salary history questions: 3 state rules to check when the offer sets pay.
Minnesota: the void rule and nondisclosure exclusion
In Minnesota, non-compete agreements face a strict statutory barrier. The Minnesota Revisor of Statutes states that "Covenants not to compete void and unenforceable" Sec. 181.988 MN Statutes. This broad prohibition is reinforced by a specific clause in the same statute, which declares that "Any covenant not to compete contained in a contract or agreement is void and unenforceable" Sec. 181.988 MN Statutes. For recruiters drafting offer letters for Minnesota-based hires, this means a standard non-compete clause is legally invalid.
The statute’s words for that work are "work for another employer in a capacity that is similar to the employee's work for the employer that is party to the agreement" Sec. 181.988 MN Statutes.
A critical distinction exists between non-competes and confidentiality agreements. The statute clarifies that "A covenant not to compete does not include a nondisclosure agreement, or agreement designed to protect trade secrets or confidential information" Sec. 181.988 MN Statutes. This exclusion allows employers to enforce NDAs and trade secret protections even when non-competes are void.
Drafting Recommendation for Minnesota Hires: 1. Do not include a covenant not to compete in the offer letter, as it is void and unenforceable. 2. Include a robust nondisclosure agreement (NDA) to protect trade secrets and confidential information, which remains enforceable.
If you are reviewing an existing contract for a Minnesota employee, verify that any non-compete language is removed or replaced with NDA terms. The void status applies to any covenant not to compete contained in a contract or agreement. The exclusion for NDAs provides the primary legal tool for protecting proprietary information.
For context on how other states handle these restrictions, see the sections on Washington and Oregon in this guide. Each state has different statutory limits that determine enforceability. Minnesota’s rule is the most restrictive, rendering the clause void. Your drafting must reflect this specific jurisdictional reality.
See Check 4 state limits before you answer a reference call if you call references for the hire.
Oregon: salary floors and term restrictions
When drafting a non-compete for an Oregon hire, the Oregon Bureau of Labor and Industries specifies that the effective term of the agreement is limited to 12 months following the end of employment, which SB 169 (2021) shortened from 18 months to 12 months, according to Oregon Bureau of Labor and Industries. This time limit applies to the period after the employee leaves your firm, so your offer letter must clearly state that the restriction expires 12 months post-termination.
Beyond the time limit, the Oregon Bureau of Labor and Industries outlines specific financial conditions for enforcement when an employee does not meet the minimum annual salary and commission requirements or is not exempt. In these cases, the employer may only enforce the noncompetition agreement if it agrees in writing to pay the employee either 50% of their annual base salary plus commissions at termination or 50% of the minimum salary listed in the statute, whichever is greater, for the duration of the agreement according to Oregon Bureau of Labor and Industries. This written agreement on compensation is a distinct requirement from the standard offer letter and must be explicitly documented to satisfy the state’s enforcement criteria for lower-earning employees.
For small staffing firms, this means reviewing the hire’s projected base salary and commission structure against the state’s minimum thresholds before finalizing the clause. If the hire falls below the exempt status or the defined salary floor, the 50% payment commitment becomes a mandatory component of the enforceable agreement. You should draft this payment promise as a separate, signed acknowledgment to ensure it stands independently from the general employment terms.
Do not assume that the standard 12-month term applies without the corresponding financial safeguards for lower-tier employees. The Oregon Bureau of Labor and Industries ties the validity of the restriction to these specific payment exceptions, so omitting the written agreement to pay the greater of the two calculated amounts can render the clause unenforceable for those who do not meet the salary requirements according to Oregon Bureau of Labor and Industries.
See State overtime rules from 4 pages before the offer while you draft that offer.
Illustrative example of a written pay promise
Take an Oregon hire who is not exempt. Use an illustrative annual base salary of 80 and illustrative commissions at termination of 20. Write a promise to pay, for the 12-month term after employment ends, the greater of 50% of annual base salary plus commissions or 50% of the minimum salary. The figures 80 and 20 are illustrative only.
Massachusetts: consideration, notice, and geographic limits
When drafting a non-compete for a Massachusetts hire, the Massachusetts General Court specifies distinct requirements depending on when the agreement is signed. If the agreement is entered into in connection with the commencement of employment, it must be in writing and signed by both the employer and employee and expressly state that the employee has the right to consult with counsel prior to signing, according to Massachusetts General Court. This requirement applies specifically to agreements signed at the start of employment.
If the agreement is entered into after commencement of employment but not in connection with the separation from employment, it must be supported by fair and reasonable consideration independent from the continuation of employment, and notice of the agreement must be provided at least 10 business days before the agreement is to be effective, according to Massachusetts General Court. The 10-business-day notice period is a mandatory component for mid-employment agreements that are not tied to separation.
Regarding the scope of the restriction, a geographic reach that is limited to only the geographic areas in which the employee, during any time within the last 2 years of employment, provided services or had a material presence or influence is presumptively reasonable, according to Massachusetts General Court. This definition ties the geographic limit to the employee’s actual service area or presence over the preceding two years.
Similarly, a restriction on activities that protects a legitimate business interest and is limited to only the specific types of services provided by the employee at any time during the last 2 years of employment is presumptively reasonable, according to Massachusetts General Court. The activity restriction must align with the specific services the employee performed in the final two years of their tenure.
To ensure compliance, verify that your offer letter includes the express statement about the right to consult with counsel if signing at commencement. For mid-employment hires, confirm that the consideration is independent of continued employment and that the 10-business-day notice period is clearly documented in the timeline. Define the geographic scope strictly based on the employee’s service areas or material presence in the last two years. Limit the restricted activities to the specific types of services provided during that same two-year window. Review these four elements against the text of General Law - Part I, Title XXI, Chapter 149, Section 24L: the counsel statement, independent consideration, and 10-business-day notice are mandatory, and only geographic reach and the activity limit are presumptively reasonable, according to Massachusetts General Court.
Review the specific state statute cited for your hire's location to determine if a non-compete is void or requires specific consideration.
FAQ: how to write a compliant non-compete agreement for new hires
Is a non-compete agreement automatically void in Minnesota?
Yes, covenants not to compete are void and unenforceable in Minnesota, according to Minnesota Revisor of Statutes. This statutory rule applies broadly to such agreements within that jurisdiction.
What written 50% payment exception applies if an Oregon employee is not exempt or does not meet the minimum annual salary and commission requirements?
Employers may only enforce a noncompetition agreement with an employee who does not meet the minimum annual salary and commission requirements when the employer agrees in writing to pay either 50% of the employee’s annual base salary plus commissions at termination or 50% of minimum salary listed above, whichever is greater, for the term of the agreement, according to Oregon Bureau of Labor and Industries. This specific payment structure serves as the exception for employees not meeting the standard salary floors.
How many days of notice does Massachusetts require for mid-employment agreements?
Notice of the agreement must be provided at least 10 business days before the agreement is to be effective, according to Massachusetts General Court. This requirement applies specifically when the agreement is entered into after the commencement of employment but not in connection with the separation from employment.
Does a non-disclosure agreement count as a non-compete in Minnesota?
No, a covenant not to compete does not include a nondisclosure agreement, or agreement designed to protect trade secrets or confidential information, according to Minnesota Revisor of Statutes. This distinction clarifies that protections for confidential data fall outside the scope of the void non-compete rule.
What geographic area is presumptively reasonable in Massachusetts?
A geographic reach that is limited to only the geographic areas in which the employee, during any time within the last 2 years of employment, provided services or had a material presence or influence is presumptively reasonable, according to Massachusetts General Court. This definition ties the enforceable scope directly to the employee's recent professional footprint.