{"id":7693,"date":"2025-02-13T11:53:42","date_gmt":"2025-02-13T11:53:42","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=7693"},"modified":"2026-02-04T10:43:13","modified_gmt":"2026-02-04T15:43:13","slug":"states-increase-noncompete-agreement-income-thresholds","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employment-agreements\/states-increase-noncompete-agreement-income-thresholds\/","title":{"rendered":"States increase noncompete agreement income thresholds"},"content":{"rendered":"\n
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by Robert S. Teachout<\/strong>, SHRM-SCP<\/strong>, Brightmine Legal Editor<\/p>\n<\/div>\n\n\n\n

Employers in seven states will need to pay more compensation in 2025 to employees who are subject to a noncompete agreement.<\/p>\n\n\n\n

Although the Federal Trade Commission’s proposed rule to ban noncompete agreements was blocked and is likely to be abandoned by the Trump administration<\/a>, many states laws restricting their use are still in effect. One way some states restrict noncompete agreements<\/a> is setting employee income thresholds below which employers are prohibited from requiring an employee to enter a noncompete agreement.<\/p>\n\n\n\n

To ensure that their salary restrictions remain relevant and effective in fulfilling their intended purposes<\/a>, seven states increase the salary levels annually based on the Consumer Price Index (CPI) for inflation or another index.<\/p>\n\n\n\n

The following adjust their salary thresholds based on the CPI:<\/p>\n\n\n\n