Non-compete enforceability after FTC ruling — what's the current status?

Heard the FTC banned non-competes but then it got blocked? I have a job offer from a competitor but my current employment agreement has a 1-year non-compete. Am I bound by it or not? So confused.

Current status (as of late 2024): The FTC rule banning non-competes was blocked by a federal court in Texas and is NOT in effect. Non-competes are still governed by state law.

What this means for you: Your non-compete's enforceability depends entirely on what state you're in and what state your employer is in.

Quick state rundown:

California: Non-competes completely unenforceable (except for sale of business)
Oklahoma, North Dakota: Also ban non-competes
Colorado, Illinois, Maine, etc.: Only enforceable for high earners
Most other states: Enforceable if "reasonable" (usually 1 year, limited geography)

I'm in Texas, employer is in Texas, new job would be in Texas. My non-compete says 1 year, nationwide, same industry.

Texas generally enforces non-competes if they're: (1) ancillary to an otherwise enforceable agreement, (2) supported by consideration (like confidential information access), and (3) reasonable in time/scope/geography.

"Nationwide" might be overbroad and a court could narrow it. 1 year is usually considered reasonable. Key question: did you have access to confidential information or customer relationships that would harm them if you joined a competitor?

practical reality: most companies don't actually enforce non-competes against regular employees. too expensive, bad PR, and uncertain outcomes. they mainly use them to scare people. exceptions: C-suite, salespeople who might take clients, engineers with trade secrets

@RealityView that's true but not always. I got a C&D letter when I joined a competitor. They didn't sue but made my life difficult for 6 months. New employer almost rescinded the offer. Worth understanding the risk before assuming they won't enforce

Best approach: (1) tell potential new employer about the non-compete upfront, (2) ask if they'll provide legal defense if your current employer takes action, (3) get an employment lawyer to review your specific situation before accepting. Consultation is usually $200-500 and could save you a lot of pain.