Non-compete, Non-compete clauses
16 CFR Part 910, 89 Fed. Reg. 38342
- What this page is
- Non-compete, Non-compete clauses
- Checked against the official source
- 2026-08-15Changed
- Responsible publisher
- ExploreWorld Legal, editorial deskLiability position
Short answer
Does Non-compete apply to your operation, and which paragraph decides?
Non-compete rests on 16 CFR Part 910, 89 Fed. Reg. 38342 and is tested here by a deterministic rule tree of 3 rules with a coverage score of 75 percent. The tree reads your facts, names the paragraph that decides the question and returns an outcome carrying citation, content hash and read date 2026-08-15. The outcome is a machine classification, not a compliance decision.
16 CFR Part 910, 89 Fed. Reg. 38342Checked against the publisher 2026-08-15Official text
A source reference, not legal advice.
- Jurisdiction
- Federal
- Risk dimensions
- employment, operations
- Tier
- Tier 2
- Coverage
- 75 %
- Impact
- 4/5
- Read
- 2026-08-15
Source chain
Every block in the register row has its own address, so an outcome can be cited down to the paragraph. The node carries the reference, the scope, the link to the official text and the outcomes in the tree that rest on the block.
- Definition of a non-compete clause
16 CFR 910.1
Terms that prevent or penalise work after the employment ends.
- Prohibition as adopted
16 CFR 910.2
The unfair method of competition finding, with an exception for senior executives.
- Notice duty as adopted
16 CFR 910.2(b)
The notice employers would have sent to affected workers.
- Court order
Ryan LLC v. FTC, N.D. Tex., 20 August 2024
The judgment setting the rule aside with nationwide effect.
16 CFR Part 910, 89 Fed. Reg. 38342
Rule tree
Rules are tested top down. Conditions are statutory elements and each outcome points to the register blocks it rests on.
nc-sale
The sale-of-business exception may apply
risk · Requirement applies conditionally · definition
Even states with a ban permit clauses in the sale of a business, see Cal. Bus. & Prof. Code § 16601. The clause must be reasonable in time and area.
nc-ban-state
The non-compete clause is void in the state
prohibited · Requirement applies · definition, prohibition, status
California (Cal. Bus. & Prof. Code §§ 16600 and 16600.5), Minnesota (Minn. Stat. § 181.988), North Dakota (N.D. Cent. Code § 9-08-06) and Oklahoma (15 Okla. Stat. § 219A) void employee non-competes. The FTC federal rule (16 CFR Part 910) was set aside by a court on 20 August 2024.
nc-other
Validity is decided by state law
risk · Requirement applies conditionally · status, prohibition
The federal ban in 16 CFR Part 910 does not apply after Ryan LLC v. FTC on 20 August 2024. State law decides, often with a reasonableness test and income floors.
Outcome
allowed · Outside the scope
The rule yields no requirement for the facts supplied
No post-employment clause is stated.
fallback · sha256:sha256:5e56f8af2a57d49476bc2f30a
Monitoring
The journal shows what moved in the register row, with the hash before and after. The impact score follows a rule stated in plain words.
How impact is scored: Grund: tillagd eller borttagen uppgift ger 3, ändrad uppgift 2, omläsning utan ändring 0. Tillägg: +1 när ändringen rör status eller tillämpningsdatum. Tillägg: +1 när agenten ligger i klass 1. Siffran begränsas till 0 till 5.
2026-08-15 · 0/5 · lasning
Raden läst mot den officiella publiceringen utan ändring
2024-04-23 · 4/5 · antagande, identifierare, status
Regeln antogs enligt 16 CFR Part 910, 89 Fed. Reg. 38342
Supervision
Artifacts and integrity
- https://legal.exploreworldai.com/api/public/v1/us-agents/non-compete/manifest.json
- https://legal.exploreworldai.com/api/public/v1/us-agents/non-compete/run
- https://legal.exploreworldai.com/api/public/v1/us-agents/non-compete/monitor.json
- sha256:a9e30d423df6050e6b196c4c314dc736e3c1be29ae36c261eb6a2cc214363344
- sha256:866f0108ce579ee22770aaca47a781e5af22366e10856410b652d1e3b6edf743
The verdict is a machine classification of the outcome, not legal advice and not a compliance decision. Responsibility position · 16 CFR Part 910, 89 Fed. Reg. 38342
Verifiable trust signals
- Six fixed blocks, one source per line
- No sentence written by a language model
- Engine version and read date on every answer
- No customer data, no documents, no advice
- Model card and audit published under the EU AI Act