Restraints on trade, such as noncompetes, are disfavored. However, Tennessee courts will uphold noncompetes in certain situations. First, the agreement must be supported by consideration. Second, the employer must have an interest that can only be protected through enforcement of the noncompete.
Explaining Non-Compete Laws in Tennessee Non-compete clauses are difficult to enforce by a former employer given that these clauses contained in contracts are often viewed as being contrary to competition and the freedom of individuals to work where they choose.
In 2025, the noncompete threshold increased from $123,750 to $127,091, and the nonsolicitation threshold went from $74,250.00 to $76,254.60.
Enforceability in Tennessee Courts Non-compete agreements are generally not favored by the courts in Tennessee, which view them as a “restraint of trade.” Unless the departing employee committed some kind of gross or obvious breach, non-compete or restrictive covenants are not always enforceable in Tennessee.
California is an outlier compared to most states; non-compete agreements are unenforceable. While employers can seek out other ways to protect confidential company information, a non-compete agreement will not accomplish those goals. Here's what you need to know about California non-compete enforceability.
Under case law, non-competes will only be enforceable if they are no wider than reasonably necessary to protect a legitimate interest (e.g. protection of confidential information or customer contacts) and are not contrary to the public interest.
The noncompete threshold is based on the Colorado Department of Labor's definition of a “highly compensated” worker, which is updated annually. The non-solicitation threshold is 60% of the noncompete threshold. In 2024, the noncompete threshold was $123,750, and the non-solicitation threshold was $74,250.
This bill prohibits an employer from enforcing, or threatening to enforce, any non-compete agreement in employment contracts with certain entry level, lower wage workers.
Although Mont. Code Ann. § 28-2-703 (enacted in 1895), reads like a ban on noncompete agreements, Montana courts enforce such agreements so long as they are carefully drafted to conform to the various state-specific requirements set forth in Montana's common law.
A BILL. To amend the Fair Labor Standards Act of 1938 to prevent employers from using non-compete agreements in employment contracts for certain non-exempt employees.