Where Noncompetes Are Dead for Salon, Cleaning, and Food-Service Hires (Wage-Threshold Map)

By StartBusinessByStatePublisher: Robert Smith Research process

Original research · LegiScan + state statutes / L&I / DOL FAQs · As of September 18, 2026 · Last updated October 2, 2026 · Distinct from tip-credit by state and paid sick leave employer-size thresholds · Not legal advice

Where is a noncompete dead (or wage-gated) for salon, cleaning, landscaping, and food-service hires? As of this as-of date, 5 jurisdictions treat ordinary employment noncompetes as near-total bans, 12 use wage or classification gates that void them for typical low- and mid-wage service workers, and the rest remain generally reasonableness-based. Scenario check: an $18/hr stylist (~$37,440/yr) is void in ban states and under every listed wage gate except New Hampshire’s current $14.50/hr floor — where HB1188 would expand protections if enacted.

Key findings

Ban baseline (current law): California (BPC §16600), Minnesota (§181.988), North Dakota (§9-08-06), Oklahoma (15 O.S. §217), and Wyoming (W.S. §1-23-108 for new agreements after 2025-07-01) make ordinary employment noncompetes generally unavailable — with narrow sale-of-business / partner / executive-style exceptions that do not rescue a typical stylist or cleaner hire.
Wage / criteria gates: Colorado ($130,014), D.C. ($162,164), Illinois ($75,000), Maine ($63,840), Maryland (~150% of applicable min. wage), Massachusetts (FLSA-exempt + garden leave), Nevada (hourly workers), New Hampshire (≤$14.50/hr), Oregon ($119,541), Rhode Island ($39,900 / OT-eligible), Virginia (~$78,365 AWW / OT-eligible), and Washington ($126,858.83 in 2026) void noncompetes below published floors or classification tests.
Rhode Island S2160 is engrossed, not law: Senate passed 2026-03-31; referred to House Labor 2026-04-01. Text would largely ban employee noncompetes (sale-of-business exception) with a proposed 2027-01-01 effective date. Until signed and chaptered, RI’s current low-wage / OT rules in ch. 28-59 control.
Washington is mid-transition: L&I’s 2026 employee threshold is $126,858.83 (RCW 49.62; WSR 25-20-099). ESHB 1155 (Ch. 149 L 26), signed 2026-03-23, makes all noncompetes void and unenforceable starting 2027-06-30, no matter when they were signed.
Service frame ≠ physician stories: This page prioritizes salon / cleaning / landscaping / food-service wage reality. Specialty healthcare noncompete bills are out of scope except as footnotes.

What changed in 2026

These updates were added on October 2, 2026. The map, chart and CSV below are the September 18 snapshot.

The federal FTC ban is officially gone. A Texas federal court set aside the FTC noncompete rule, the FTC dropped its appeals, and on February 12, 2026 the FTC removed the rule from the Code of Federal Regulations (Federal Register, Feb. 12, 2026). There is no national ban. State law decides.
Washington will void all noncompetes on June 30, 2027. Starting that day, every noncompete is void and unenforceable, no matter when it was signed. Employers also cannot enforce, threaten to enforce, or tell a worker they are bound by one. Nonsolicitation, confidentiality, trade-secret and sale-of-business agreements are not counted as noncompetes (ESHB 1155, Chapter 149, Laws of 2026). Until then, the 2026 pay threshold of $126,858.83 still applies.
Virginia: no severance, no noncompete. Since July 1, 2026, a noncompete cannot be enforced against a worker you fire without cause unless you give severance or another payment. You must disclose that payment when the worker signs. This applies to agreements signed, changed or renewed on or after July 1, 2026 (Va. Code §40.1-28.7:8(C); 2026 Acts ch. 883 (SB 170)). The low-wage ban below still applies too.
Florida went the other way. Florida’s CHOICE Act became law in July 2025. For higher earners (salary above twice the county’s annual mean wage), it allows noncompetes of up to 4 years and requires courts to quickly order the worker to stop working for a rival. It does not cover health care practitioners, and typical salon or cleaning wages fall far below the pay test (Fla. Stat. §§542.41-542.45).
Illinois threshold rises in 2027. The $75,000 noncompete floor goes to $80,000 on January 1, 2027, and the $45,000 nonsolicit floor goes to $47,500 (820 ILCS 90/10).

We checked the 2026 dollar thresholds for Colorado, D.C., Maine, Oregon, Rhode Island, Virginia and Washington again on October 2, 2026. None has changed since September 18. Overview source: National Law Review, Sept. 21, 2026, confirmed against the statutes linked above.

U.S. map of employment noncompete bans versus wage-gated regimes versus generally enforceable states as of September 18 2026 — Map taxonomy: teal = near-total employment ban · amber = wage/criteria-gated · gray = generally enforceable if reasonable (high level). Thresholds change annually — verify primary cites.

Bar chart of selected 2026 noncompete salary floors compared with an 18 dollar per hour stylist annualized at about 37440 dollars — Selected 2026 wage floors vs an illustrative $18/hr full-time stylist (~$37,440). Not legal advice; classification and overtime rules can independently void agreements in RI, VA, MA, NV, and elsewhere.

Illustrative $18/hr stylist (RI / NH / CA / MN)

For a salon bringing stylists into the business, work through salon staffing and operating arrangements and salon insurance. Decide which responsibilities belong in the work agreement and price coverage for the services being offered.

Assumptions: $18.00/hour W-2 stylist, ~2,080 hours/year ≈ $37,440 annualized earnings, typically non-exempt. Results below are threshold / ban screens only — not a prediction of litigation outcomes.

California / Minnesota: Employment noncompete is void under current ban statutes.
Rhode Island (current law): Void — under the 2026 low-wage figure ($39,900) and typically as overtime-eligible under ch. 28-59. S2160 is not yet law.
New Hampshire (current law): RSA 275:70-a only voids agreements for workers ≤ 200% of federal minimum wage ($14.50/hr). An $18/hr stylist is above that floor, so the wage statute alone does not void the covenant; reasonableness and other defenses may still apply. HB1188 (pending) would expand low-wage coverage if enacted.

Rhode Island S2160 status (verified)

LegiScan bill_id 2084262: status Engrossed (status_date 2026-03-31). Senate read and passed; referred to House Labor (2026-04-01). Official PDF states the act would take effect January 1, 2027 if enacted. Engrossed ≠ signed ≠ chaptered. Operators should still apply today’s low-wage / OT rules in R.I. Gen. Laws ch. 28-59 until a chaptered effective date exists.

Primary trackers: LegiScan RI S2160 · Senate text PDF.

State table (featured regimes + watch states)

Full 51-row CSV download includes every state/DC with the same high-level taxonomy. Featured rows below cover bans, wage gates, and 2025–2026 watch bills most relevant to service employers.

Employment noncompete ban / wage-threshold map for service hires (as of 2026-09-18)
State	Bucket	Regime	Threshold / rule	$18/hr stylist screen	2025–2026 bill watch	Cite
California (CA)	ban	Near-total employment noncompete ban	Void in employment context (narrow sale-of-business / partnership exceptions)	Void under BPC §16600 (employment noncompete)	—	Cal. Bus. & Prof. Code §16600 et seq.
Minnesota (MN)	ban	Near-total employment noncompete ban	Void; sale-of-business / trade-secret tools still available	Void under Minn. Stat. §181.988	—	Minn. Stat. §181.988
North Dakota (ND)	ban	Near-total employment noncompete ban	Contracts restraining lawful profession generally void (statutory exceptions)	Generally void under N.D.C.C. §9-08-06	—	N.D.C.C. §9-08-06
Oklahoma (OK)	ban	Near-total employment noncompete ban	Contracts restraining trade generally void (statutory exceptions)	Generally void under 15 O.S. §217	—	15 O.S. §217
Wyoming (WY)	ban	New noncompetes generally void (2025)	W.S. 1-23-108: new noncompetes generally void; exceptions include business sale, trade secrets, qualifying repayment, executive/management	New ordinary-employee noncompete generally void (eff. 2025-07-01); pre-effective contracts may differ	SF0107 / Enrolled Act 87 (2025) — effective 2025-07-01	W.S. §1-23-108 (SF0107, 2025)
Colorado (CO)	wage gated	Highly compensated worker threshold	Noncompete only if earnings ≥ $130,014 (2026 highly compensated threshold); nonsolicit ≥ $78,008.40	Void — far below $130,014 highly compensated threshold	—	C.R.S. §8-2-113; 2026 highly compensated amount $130,014
District of Columbia (DC)	wage gated	DOES compensation threshold	Noncompete banned below DOES threshold: $162,164 (2026 general)	Void — below $162,164 DOES threshold	—	D.C. Code §32-581.01 et seq.; DOES 2026 threshold $162,164
Illinois (IL)	wage gated	Freedom to Work Act salary floors	Noncompete requires ≥ $75,000 earnings (2026), rising to $80,000 on 2027-01-01; nonsolicit ≥ $45,000 (2026), rising to $47,500; plus notice/consideration rules	Void — below $75,000 noncompete floor	—	820 ILCS 90/ (Illinois Freedom to Work Act)
Maine (ME)	wage gated	≤400% federal poverty level ban	Noncompete prohibited if wages ≤ 400% FPL → $63,840 (2026)	Void — $18/hr annualized well under $63,840	—	26 M.R.S. §599-A; 2026 FPL-based figure $63,840
Maryland (MD)	wage gated	<150% of applicable minimum wage	Noncompete void if earnings < 150% of applicable min. wage → ~$49,920/yr at $15→$16 state MW path (2026); county MW may raise floor	Void — $18/hr is under 150% of state MW ($22.50–$24/hr equivalent)	—	Md. Code, Lab. & Empl. §3-716
Massachusetts (MA)	wage gated	FLSA-exempt + garden leave / consideration	Noncompete generally limited to FLSA-exempt employees meeting salary-basis tests; garden leave or other mutually agreed consideration required	Typically void / unavailable — hourly salon stylist is usually non-exempt	—	M.G.L. c.149 §24L
Nevada (NV)	wage gated	Hourly employees protected	Noncompete restrictions focus on hourly (non-salaried) employees — hourly workers generally cannot be bound	Void for typical hourly stylist (not paid on salary basis)	—	NRS 613.195
New Hampshire (NH)	wage gated	≤200% federal minimum wage (hourly)	Noncompete void for 'low-wage employee' earning ≤ 200% federal MW (= $14.50/hr while FMW is $7.25; ~$30,160 annualized)	NOT void solely on wage floor — $18/hr > $14.50/hr; reasonableness / other defenses may still apply	HB1188 (2026) — low-wage noncompete expansion; Introduced; majority committee ITL report 2026-02-10 — not enacted as of as-of date	RSA 275:70-a
Oregon (OR)	wage gated	BOLI annual income floor	Noncompete void unless employee income at termination exceeds BOLI amount: $119,541 (2026)	Void — far below $119,541	—	ORS 653.295; BOLI 2026 threshold $119,541
Rhode Island (RI)	wage gated	Low-wage employee ban (250% FPL) — current law	Noncompete void for low-wage employee: avg annual earnings < 250% FPL → $39,900 (2026). Also bars overtime-eligible workers regardless of pay.	Void under current law — ~$37,440 < $39,900 and typically OT-eligible	S2160 (2026) — Engrossed Senate 2026-03-31; referred House Labor 2026-04-01; would largely ban employee noncompetes (sale-of-business exception) with proposed 2027-01-01 effective date — NOT law unless signed	R.I. Gen. Laws §§28-59-1 to 28-59-3; 2026 low-wage figure $39,900
Virginia (VA)	wage gated	Below average weekly wage / OT-eligible	Noncompete void for low-wage employees: avg weekly earnings < VA average weekly wage ($1,507.01 → ~$78,364.52/yr in 2026) OR OT-eligible under FLSA. Since 2026-07-01, also unenforceable against any worker fired without cause unless disclosed severance or other payment is given (agreements signed, changed or renewed on or after that date).	Void — OT-eligible / earnings under statewide average weekly wage	SB 170 (2026 Acts ch. 883), effective 2026-07-01: no severance, no noncompete	Va. Code §40.1-28.7:8; 2026 AWW $1,507.01
Washington (WA)	wage gated	L&I earnings threshold (ban starts 2027)	2026: employee noncompete void unless earnings > $126,858.83 (IC > $317,147.09). From 2027-06-30, all noncompetes void, no matter when signed (ESHB 1155 / Ch. 149 L 26).	Void under 2026 threshold — far below $126,858.83	ESHB 1155 — Governor signed 2026-03-23; Chapter 149, 2026 Laws; effective 2027-06-30 (all noncompetes void)	RCW 49.62; WA L&I 2026 thresholds; ESHB 1155 / Ch.149 L26
Hawaii (HI)	generally enforceable	Tech-business ban only (current); restaurant/retail pending	HRS §480-4(d) voids noncompete/nonsolicit for technology-business employees. Restaurant/retail still generally reasonableness-based unless SB1161 enacted.	No statewide service-worker wage ban today — reasonableness / other defenses; SB1161 would add restaurant/retail if enacted	SB1161 (carryover) — would extend noncompete/nonsolicit ban to restaurant & retail; Introduced / referred; not enacted as of as-of date	HRS §480-4(d); LegiScan HI SB1161
Connecticut (CT)	generally enforceable	Common-law reasonableness (+ physician specialty rules)	No general low-wage dollar floor statewide; reasonableness / consideration doctrines apply	No automatic wage-void statute — enforceability fact-specific (not advice)	HB05492 (2026) — limitations on noncompete/exclusivity; Joint Favorable / House calendar File 393 as of early Apr 2026 — not enacted as of as-of date	Common law; LegiScan CT HB05492
New York (NY)	generally enforceable	Common-law reasonableness	No statewide low-wage noncompete ban enacted; reasonableness factors apply	No automatic wage-void statute statewide	A02456 (2025) — low-wage covenant ban proposal; referred Labor — not enacted	Common law; LegiScan NY A02456
Michigan (MI)	generally enforceable	Statutory reasonableness (ANTITRUST §4a)	MCL 445.774a allows reasonable noncompetes with protectable interest — no general low-wage floor	No automatic wage-void statute	HB4040 (2025) — would tighten noncompete conditions; Introduced / Economic Competitiveness — not enacted	MCL 445.774a; LegiScan MI HB4040
Florida (FL)	generally enforceable	Enforceable with enhanced track above county mean wage	No low-wage void floor. Stronger enforcement for 'covered employees' with salary > 2× county annual mean wage under the CHOICE Act (ch. 2025-213): noncompetes up to 4 years, court must grant a preliminary injunction. Health care practitioners excluded.	No automatic void for low wage — different from ban/threshold states	—	Fla. Stat. §542.335; CHOICE Act, Fla. Stat. §§542.41-542.45 (ch. 2025-213)
Louisiana (LA)	generally enforceable	Generally enforceable with limits	Reasonableness / statutory limits; 2026 Act 150 targets interns/apprentices noncompetes	No general low-wage void floor for ordinary employees	HB315 — Passed / Act 150; effective 2026-08-01 (interns & apprentices)	La. R.S. (noncompete chapter); Act 150 (2026)

2025–2026 bill watch (service-relevant)

RI S2160 — Engrossed; House Labor; proposed ban + 2027-01-01 effective date — not law.
NH HB1188 — Low-wage noncompete expansion; Introduced; majority ITL committee report — not enacted.
CT HB05492 — Limitations on noncompetes / exclusivity; Joint Favorable / House File 393 path — not enacted as of as-of date.
HI SB1161 — Would extend HRS §480-4(d) beyond technology businesses to restaurant & retail — carryover / referred — not enacted.
WA ESHB 1155 — Enacted (Ch. 149 L 26); all noncompetes void starting 2027-06-30, no matter when signed (wage gate still controls until then).
VA SB 170 (2026 Acts ch. 883): Enacted; effective 2026-07-01. No noncompete enforcement after a firing without cause unless disclosed severance or other payment is given.
LA HB315 / Act 150 — Enacted; interns & apprentices focus; effective 2026-08-01.
NY A02456 / MI HB4040 — Pending low-wage / condition bills — proposed ≠ law.

Distinct from our tip-credit by state wage page and paid sick leave employer-size thresholds. Related labor legislation trackers: workers-comp threshold bills · sales-tax-on-services bills. Industry hubs: hair salon · cleaning industry statistics · food truck.

Downloads

Suggested citation: StartBusinessByState.com — Where Noncompetes Are Dead for Salon, Cleaning, and Food-Service Hires (Wage-Threshold Map). https://startbusinessbystate.com/noncompete-wage-thresholds-service-workers-by-state/. Please credit and link to this page when using our compilation or analysis, and retain the original-source credits and applicable reuse terms.

Methods, fences, and limits

As-of date: 2026-09-18 (America/New_York). Thresholds indexed to FPL, CPI-W, AWW, BOLI, DOES, or CDLE change — re-check primary sources before relying on a dollar figure.
Sources: LegiScan getBill for RI S2160, NH HB1188, CT HB05492, HI SB1161, WA ESHB 1155, LA HB315; official statutes / L&I / legislature PDFs for current-law floors. Law-firm 2026 roundups used only as leads, then verified against primary cites above.
Proposed ≠ law. Engrossed / enrolled / filed ≠ signed. Passed ≠ in force without the statute’s effective date.
Not legal advice. Map buckets are high-level screens for service employers, not enforceability opinions. Non-solicit, NDA, garden leave, sale-of-business, and choice-of-law issues are out of scope.
Specialty carve-outs omitted (physicians, architects, broadcasters, etc.) except where they would confuse a service-hire table.
FTC federal noncompete rule was set aside in court and formally removed from the Code of Federal Regulations on February 12, 2026 (91 FR 6507). State law controls this page.

Built for salon, booth-rental, cleaning, landscaping, and food-service operators who need a wage-threshold map — not another physician-only roundup.