Raising the Cost of Noncompetes: 2026 State Noncompete Salary Threshold Changes

As readers to this Blog are aware, 2025 saw the enactment of new state laws affecting noncompete agreements.

Although 2026 is off to a slower pace in the enactment of new noncompete legislation, employers should be aware of the updated 2026 salary threshold applicable to states that maintain minimum salary thresholds for noncompetes.

During the past several years, an increasing number of states have conditioned the use of noncompetes on whether the employee meets a specific minimum salary threshold. That is, if the employer does not pay the employee the minimum salary threshold, the employer cannot subject the employee to a noncompete. The minimum salary thresholds are not static; they are generally updated, indexed, and recalculated on an annual basis, creating annual compliance risks for employers that rely on outdated agreements.

State-by-State Overview

Below we provide a state-by-state overview of the updated 2026 noncompete salary thresholds in those jurisdictions where such minimum salary thresholds apply:

Colorado

Under Colorado law, an employer cannot subject an employee to a noncompete where an employee earns less than the “threshold amount for highly compensated workers.” Effective January 1, 2026, the threshold amount for highly compensated workers is $130,014. Furthermore, an employer cannot subject an employee to a non-solicitation provision where an employee earns less than 60% of the threshold amount for highly compensated workers. Colorado’s 2026 non-solicitation salary threshold is $78,008.40.

District of Columbia

An employer cannot subject an employee to a noncompete who earns less than the amount set out by the Department of Employment Services. Effective January 1, 2026, the DC noncompete salary threshold is $162,164.

Florida

While an employee does not need to meet the noncompete salary threshold to render a noncompete enforceable in Florida, doing so, while complying with other requirements, provides an employer with enhanced noncompete protections. Under Florida law, a “covered employee” is one who earns greater than twice the annual mean wage of the county in which the employer has its principal place of business or the county in which the employee resides if the employer’s principal place of business is not in the state. Therefore, while the salary threshold is not determinative of noncompete enforceability, employers should be cognizant of Florida’s 2026 county wage increases to take advantage of Florida’s recent employer-friendly noncompete law.

Illinois

The Illinois Freedom to Work Act requires both a minimum salary requirement for noncompetes, as well as a separate minimum salary requirement for non-solicit provisions. Illinois’s 2026 noncompete salary threshold remains at $75,000 and the 2026 non-solicit salary threshold remains at $45,000. The noncompete and non-solicit salary thresholds in Illinois will next increase in 2027.

Maine

Under Maine law, an employee who earns wages at or below 400% the federal poverty level shall not be subject to a non-compete agreement. In 2026, an employer cannot subject a Maine employee to a noncompete agreement where an employee makes $63,840 or less.

Maryland

Under Maryland law, an employer cannot subject an employee to a noncompete if they make less than 150% of the state minimum wage. The 2026 minimum wage in Maryland will increase to $16 per hour on July 1, 2026, which equates to a $49,920 However, Montgomery County has a minimum wage of $17.65, for a threshold amount of $55,068.

New Hampshire

New Hampshire’s noncompete threshold remains at $30,160 for 2026.

Oregon

Under Oregon law, a noncompete is void unless an employee whose annual income at termination exceeds an amount set by the Bureau of Labor and Industries. In 2026, the non-compete salary threshold is $119,541.

Rhode Island

Under Rhode Island Law, an employer cannot subject a “low-wage employee” to a noncompete. A low-wage employee is defined as an employee whose average annual earnings is less than 250% of the federal poverty level. The 2026 noncompete salary threshold in Rhode Island is $39,900.

Virgina

Virgina’s noncompete threshold depends on the employee’s average weekly wage. Employees who earn less than the average weekly wage cannot be subject to a noncompete. In 2026, the average weekly wage is $1,507.01, which equates to an annual minimum threshold of $78,364.52 The Virginia employee must also be an exempt worker under the Fair Labor Standards Act.

Washington

Under Washington law, noncompetes are enforceable against employees or independent contractors only if they earn more than the applicable income threshold. The Washington Department of Labor & Industries must adjust these thresholds for inflation each year. For 2026, the salary threshold for employees is $126,858.83 and the income threshold for independent contractors is $317,147.09.

Employer Next Steps

The 2026 minimum noncompete salary thresholds should work as a reminder to employers to proactively review their noncompetes and non-solicitation provisions. Failure to meet the minimum salary threshold can render an otherwise enforceable restrictive covenant unenforceable. Reviewing and updating your noncompetes and restrictive covenant agreements helps minimize legal risk, prevent employee disputes, and better ensure the enforceability of restrictive covenants.

Please stay tuned for our upcoming update discussing the Federal Trade Commission’s January 27, 2026 presentation regarding the FTC’s role in addressing noncompetes under the Trump Administration.