In 2025, employers in seven states must pay higher wages to employees under noncompete contracts.
While the Federal Trade Commission (FTC)’s proposal to ban noncompete agreements was blocked and may be dropped by the Trump administration, several states forbid noncompete agreements for employees earning below a specific income threshold.
- Oregon: from $113,241 in 2024 to $116,427 in 2025.
- Washington: from $120,559.99 to $123,394.17; for independent contractors, it increases from $301,399.98 to $308,485.43.
- Maine: from $60,240 in 2024 to $62,600 in 2025.
- Rhode Island: from $37,650 in 2024 to $39,125 in 2025.
- Colorado: from $123,750 to $127,091, and the non-solicitation threshold increased from $74,250.00 to $76,254.60.
- Virginia: from $73,320.00 in 2024 to $76,081.20 in 2025.
Employers in these states who use or plan to use noncompete agreements should review their contracts and adjust and/or amend employee pay as needed to meet the new thresholds.
