2025 Noncompete Agreement Salary Thresholds Increasing in Multiple States - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- Apr 2
- 1 min read
2025 Noncompete Agreement Salary Thresholds Increasing in Multiple States
Effective: 2025
Employers in seven states will need to ensure their noncompete agreements comply with new salary thresholds that are increasing due to inflation or other state-specific formulas. These updates impact employees who are subject to noncompete clauses, setting minimum earning levels below which employers cannot enforce such agreements.
Key Updates:
Colorado | Noncompete threshold:
$123,750 ➝ $127,091
Non solicitation threshold: $74,250 ➝ $76,254.60 |
Maine | 400% of federal poverty level ➝ $62,600 |
Oregon | $113,241 ➝ $116,427 |
Rhode Island | 250% of federal poverty level ➝ $39,125 |
Virginia | $73,320 ➝ $76,081.20 |
Washington | Employees: $120,559.99 ➝ $123,394.17 Independent contractors: $301,399.98 ➝ $308,485.43 |
Washington, D.C. | 2025 threshold not yet announced; 2024 level $154,200 remains in effect. |
Action Item:
Review and update any noncompete agreements that may be impacted by these new thresholds. Adjust compensation for employees subject to noncompete agreements, if needed.
If your organization operates in one of these states, now is the time to assess compliance and update contracts accordingly.
Get day-to-day updates on 2025 Noncompete Agreement Salary Thresholds Increasing in Multiple States visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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