How enforceable are non-compete agreements across different states, and what is the general trend in the law?

Non-compete enforceability is a patchwork of state law. California (Business and Professions Code Section 16600) has long refused to enforce non-competes except in very narrow circumstances (business sales), making it a destination for employees fleeing restrictive agreements. Most other states apply a reasonableness standard, evaluating whether the restriction is reasonable in duration (courts often balk at more than 1 to 2 years), geographic scope, and whether it protects a legitimate business interest such as trade secrets or customer relationships. The FTC issued a rule in April 2024 seeking to ban most non-competes nationwide, but it was blocked by federal courts. Several states including Oklahoma, Minnesota, and Virginia have passed significant recent restrictions.