Protectable interest, reasonable scope, and consideration.
Esshaki Legal Media TeamCurrent as of January 2026
Enforceability turns on three questions, applied differently in every state.
Protectable interest. Trade secrets and confidential information, customer
relationships and goodwill, and specialized training. Preventing ordinary
competition is not a protectable interest, and a covenant that protects nothing
beyond the employer’s preference not to compete fails.
Reasonableness. Duration, geographic scope and the scope of restricted
activity, each assessed against the interest. Duration beyond a year is
scrutinized in many states; geographic scope must relate to where the employee
worked; and activity restrictions should be limited to the work the employee
actually performed.
Consideration. Employment itself at hire in most states. For a covenant
signed by an existing employee, continued employment suffices in some states and
independent consideration is required in others — a bonus, a promotion, or
access to new information.
Statutory restrictions. Several states prohibit non-competes below a wage
threshold, for defined occupations, or entirely; require advance notice before
an offer; and require a copy on request.
Blue pencilling and reformation. Some courts narrow an overbroad covenant;
others strike it entirely. Which approach applies determines whether aggressive
drafting is a strategy or a risk.