Non-compete agreements are changing. What growing companies should do now

For years, many growing companies asked every new hire to sign a non-compete and moved on. That approach is becoming risky. Lawmakers in several states have narrowed when non-competes can be used, courts are reading them more strictly, and some employees simply ignore them because they expect the agreement won’t be enforced.

None of this means you can no longer protect your business. It means the protection has to come from the right tools, written for the people and places where you actually hire.

What has changed

Three trends affect most of our clients:

• Income thresholds. More states bar non-competes for employees below a salary level, and those levels rise every year.
• Notice and consideration. Agreements signed after someone starts work increasingly need something extra in return, and some states require advance notice before the first day.
• Narrower scope. Courts are less willing to rewrite an overbroad agreement. If it reaches too far, they may refuse to enforce any of it.

The question is no longer “Can we stop them from working for a competitor?” but “What, exactly, are we trying to protect?”

What still works

Confidentiality agreements, invention assignment clauses and well-drafted non-solicitation agreements remain widely enforceable, and they protect what most companies actually worry about: customer relationships, pricing, product plans and the people who know them.

Practical safeguards matter as much as paperwork. Limit access to sensitive information to the people who need it, label confidential material, and run a consistent exit process that collects devices and reminds departing employees of their obligations.

A checklist for the next ninety days

1. List every role that signs a restrictive covenant today, and why.
2. Map where those employees actually work, including remote staff.
3. Replace blanket non-competes with confidentiality and non-solicitation terms where they will do the job.
4. Keep non-competes only for senior roles where you can justify them, with clear limits on time and territory.
5. Update offer letters and onboarding so new agreements are signed before the first day.
6. Train managers on the exit process and on what to do if a departing employee contacts clients.

When to talk to a lawyer

Call us before you rely on an agreement to stop a departing employee, before you roll out new agreements to an existing team, and whenever you hire someone who signed restrictive covenants with a competitor. A short review now costs far less than a dispute later.