Tennessee Sets $70K Floor, Presumption Limits on Non-Compete Duration
Employers with Tennessee-based workers must reassess non-compete agreements now that the state has imposed a minimum-income threshold and duration presumptions.
Tennessee has enacted legislation restricting the use of non-compete agreements, conditioning enforceability on the employee earning at least $70,000 annually and applying rebuttable presumptions that cap reasonable durations. The law signals a broader trend of state-level pushback against broad restrictive covenants, following similar measures in California, Minnesota, and New York. Employers should audit existing agreements for covered employees, confirm compensation levels meet the threshold, and document the business justification for any duration exceeding the presumption. Severance, garden-leave, or customer non-solicitation provisions may offer workable alternatives where non-competes no longer fit.