Yes, employers can require you to sign a non-compete agreement, but its enforceability is heavily dependent on state law and evolving federal oversight. Some states like California ban most non-competes outright, while others enforce them if they are reasonable in duration, geography, and scope. As of April 2024, the Federal Trade Commission (FTC) issued a rule banning most non-compete clauses nationwide, though it may face legal challenges and delays in implementation.

To be valid, a non-compete agreement must generally meet several key criteria. It must be narrowly tailored to protect the employer’s legitimate business interests, such as confidential information, trade secrets, or client relationships. Additionally, the agreement should include reasonable limitations on the duration and geographic scope to ensure it is not overly restrictive. Finally, there must be an adequate consideration provided to the employee, this could include initial employment, promotion, or financial incentives such as bonuses, in exchange for agreeing to the restrictions.