Are Noncompete Agreements Banned in NC?

noncompete agreement


Q: Are noncompete agreements now banned in North Carolina?

A: No, but they will be if a new federal rule goes into effect. On April 23, 2024, the Federal Trade Commission (FTC) voted to ban non-compete agreements for workers. Noncompete agreements typically prevent an employee from working for a competitor for a certain length of time after leaving a company.

The new rule does not go into effect for 120 days after it is published in the Federal Register. Two lawsuits have been filed, and an injunction likely will be granted to stay the rule from going into effect.

The ban affects most workers, with some exceptions. For example, it does not apply to senior key executives making over $151,164 who have decision-making authority.

Employers will still be able to use non-solicitation clauses and nondisclosure agreements. Keep an eye out as this will be an ongoing battle, with more information to come via the courts. For more information: Click here to view a fact sheet from the FTC.

Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit or call 336-333-7907.

The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.