State/Jurisdiction

Previously (2023)

Current for 2024

Colorado

- Non-solicit: $67,500/year

- Non-compete: $112,500/year

- Non-solicit: $74,250/year

- Non-compete: $123,750/year

Colorado’s 2024 Publication and Yearly Calculation of Adjusted Labor Compensation (2024 PAY CALC) increases the “highly compensated” employee salary threshold for non-competes to $123,750/year.  The non-solicit salary threshold is 60% of that figure, which comes to $74,240/year. 

District of Columbia

- Non-compete: $150,000/year (but $250,000/year for medical specialists)

- Non-compete: $154,650/year (and $257,750 for medical specialists)

This 3.4% increase is based on the Consumer Price Index for All Urban Consumers in the Washington Metropolitan Statistical Area, which is published by the Bureau of Labor Statistics of the United States Department of Labor.

Illinois

- Non-solicit: $45,000/year

- Non-compete: $75,000/year

- Non-solicit: $45,000/year

- Non-compete: $75,000/year

There are currently no anticipated changes for 2024.

Maine

- Non-compete: 400% of the 2023 Federal Poverty Level, which amounted to $58,320/year in 2023.

- Non-compete: $60,240/year

The 2024 Federal Poverty Level increased to $15,060 so Maine’s 2024 non-compete threshold is now $60,240/year.

Maryland

- Non-compete:

• Agreements effective before 10/1/23: $15/hour or $31,200/year;

• Agreements effective on and between 10/1/23 and 12/31/23: 150% of state minimum wage.  This means $19.88/hour (if employer has more than 14 employees) or $19.20/hour (if employer has fewer than 14 employees)

- Non-compete: $22.50/hour or $46,800/year

This is based on 150% of Maryland’s 2024 minimum wage.

Massachusetts

- Non-compete: $684/week and classified as exempt under the Fair Labor Standards Act (FLSA)

- Non-compete: $684/week

There are currently no anticipated changes for 2024. If minimum wage increases under FLSA, the change would impact Massachusetts salary threshold.  

Nevada

- Non-complete: Salaried employees only

- Non-compete: Salaried employees only

There are currently no anticipated changes for 2024.

New Hampshire

- Non-compete: 200% of the 2023 federal minimum wage, or 200% of the tipped minimum wage in the state. In 2023, this was $14.50/hour or $30,160/year.

- Non-compete: $14.50/hour or $30,160/year.

There are currently no anticipated changes for 2024.

Oregon

- Non-compete:

• $108,581/year at the time of termination, and be exempt from Oregon’s minimum wage laws under Oregon Revised Statute § 653.020, such as by meeting the “administrative, executive, or professional” exemption requirements if employer wishes to use a non-compete agreement that does not have a garden leave requirement; or
• No salary threshold but employer may still enforce a non-compete for up to 12 months if the employer agrees in writing to pay the employee for the period of enforcement the greater rate of (1) 50% of the employee’s annual gross base salary and commissions at the time of termination, or (2) 50% of the “median income for a four-person family,” which was $108,581 in 2023.

- Non-compete: $113,250/year

This 4.3% increase is based on inflation data from the Bureau of Labor Statistics of the United States Department of Labor.

Even if an employee does not meet the minimum salary threshold, an Oregon employer may enforce a non-compete at the time of separation if certain criteria are met. These criteria include agreeing in writing to pay the employee the greater of 50% of the employee’s annual salary or 50% of Oregon’s non-compete threshold salary.

Rhode Island

- Non-compete: 250% of the 2023 Federal Poverty Level ($36,450/year) and classified as exempt under Fair Labor Standards Act

- Non-compete: $37,650/year

The 2024 Federal Poverty Level increased to $15,060/year so Rhode Island’s 2024 non-compete threshold is now $37,650.

Any increases to salary thresholds under the FLSA could impact Rhode Island’s threshold requirements.

Virginia

- Non-compete: $1,343/week or $69,836/year for employees

- Non-compete: $1,410/week or $73,320/year

Wage thresholds for non-compete agreements are based on average weekly earnings in Virginia.  On January 24, 2024, that figure increased from $1,343/week to $1,410/week.

Washington

- Non-compete: $116,593.18/year for employees

- Non-compete: $120,559.99/year

This increase is based on 2024 inflation numbers.

State/Jurisdiction

Timing

Substance of the notice

Colorado

- New hires: Before they accept the offer of employment.

- Existing employees: At least 14 days before the earlier of (1) the effective date of the agreement, or (2) the effective date of any additional compensation or consideration.

- Unclear if this rule applies for non-solicitation provisions.

- Non-compete agreement must be provided in a separate document that:

• Clearly identifies the non-compete provision and tells the employee where to find the provision; and

• States that the agreement contains a restrictive covenant that could restrict employee’s employment options in the future.

• Unclear if this rule applies for non-solicitation provisions.

District of Columbia

- New hires: At least 14 days before the individual commences employment for the employer.

- Existing employees: At least 14 days before the employee must execute the agreement.

- For provisions that are excluded from the definition of “non-compete provision,” such as non-disclosure provisions protecting confidential information and no moonlighting policies:  The employer must provide a copy of such provision to an employee within 30 days after the employee’s acceptance of the employment.

- Non-compete agreement must:

• be provided in writing; and

• include the following statement:

“The District of Columbia Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions. [Name of employer] has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES).”

- Employees must receive notice any time the employer’s noncompete policy changes, or any other restrictive covenants change (including non-solicitation agreements).

Illinois

- New hires: At least 14 calendar days before commencement of employment.

- Existing employees: Employee must be given at least 14 calendar days to review and consider new non-compete and non-solicitation provisions before they take effect.

- Time requirements may be waived by candidate or employee.

- Non-compete and non-solicitation agreements must:

• Be provided in writing; and

• Advise the employee in writing to consult with an attorney.

Maine

- New hires: Prior to the offer, with at least 3 business days to consider the non-compete provision before the deadline to sign.

- Employer must provide a copy of the non-compete agreement; and

- Employer must notify the employee that the agreement contains a non-compete provision.

Massachusetts

- New hires: Earlier of 10 business days before commencement of work, or prior to making a formal offer.

- Existing employees: At least 10 business days before the agreement takes effect.

- Employer must provide a copy of the non-compete agreement to the employee; and

- Employer must advise employee of the right consult with counsel.

- New hires: Prior to acceptance of the offer of employment.

- Employer must provide a copy of the non-compete agreement.

Oregon

- New hires: At least 2 weeks before the employee’s first day of employment.

- Existing employees: Within 30 days after termination of employment.

- This applies to overbroad non-solicitation agreements, in addition to non-competes.

- New hires: Employer must provide a copy of the non-compete provision with the offer letter, and clearly state that employment will be conditioned on the employee signing the non-compete agreement.

- Existing employees: Employer must provide a copy of the signed non-compete agreement within 30 days of terminating employment.

Virginia

- Standing requirement to post a copy of Virginia Code 40.1-28.7:8 (forbidding non-compete agreements with low-wage employees).

- Must post a copy of Virginia Code 40.1 -28.7:8 or an approved summary of the code in the location that employer posts other required notices.

Washington

- New hires:  Before acceptance of the offer.

- Existing employees: Before the agreement takes effect.

- New hires: Employer must disclose the terms of the non-compete in writing.

- Existing employees:  If non-compete will take effect at a later date (such as, after a salary increase), Employer must notify the employee that the agreement will take effect (and be enforceable against the employee) in the future.