Are Non-Competes Enforceable in Tennessee?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Pay threshold / worker limits
Void below $70,000 pay since July 1, 2026; 2 years presumed OK
Since July 1, 2026, Tennessee employers may not require, request or enforce a non-compete with an employee whose annualized compensation is under $70,000 (hourly workers: rate x 40 x 52). For covenants that are allowed, courts presume a post-employment restraint of two years or less reasonable and a longer one unreasonable, and may modify a covenant to make it reasonable. Customer and employee non-solicits and confidentiality agreements remain enforceable. Health-care provider covenants are deemed reasonable within statutory limits (2 years; 10 miles or the county).
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Allowed only with strict limits
Tennessee allows this non-compete only if it meets the statute's conditions — check each item below.
- Tennessee: Void below $70,000 pay since July 1, 2026; 2 years presumed OK. T.C.A. 50-1-210, 50-1-211 (2026 Pub. Ch. 934)
- Enter annual earnings — Tennessee voids non-competes below $70,000. Annualized compensation (wages, salary, commissions, nondiscretionary bonuses and other pay) of less than $70,000; hourly rate x 40 x 52 T.C.A. 50-1-211 (Pub. Ch. 934)
- Duration: Rebuttable presumption: 2 years or less reasonable, longer unreasonable (employees and independent contractors); 3 years for distributors and franchisees; sale of a business: longer of 5 years or the payout period. T.C.A. 50-1-210, 50-1-211 (2026 Pub. Ch. 934)
Other Tennessee rules to check
- Non-solicitation clauses: The 2026 law does not limit confidentiality agreements, customer non-solicits or employee non-solicits; the $70,000 ban covers only non-competes.
- If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Tennessee non-compete rules
- Employee pay threshold
- $70,000 Annualized compensation (wages, salary, commissions, nondiscretionary bonuses and other pay) of less than $70,000; hourly rate x 40 x 52
- Duration
- Rebuttable presumption: 2 years or less reasonable, longer unreasonable (employees and independent contractors); 3 years for distributors and franchisees; sale of a business: longer of 5 years or the payout period
- Signed mid-employment
- Yes, if employment actually continues for a substantial period after signing (Central Adjustment Bureau v. Ingram, Tenn. 1984).
- Non-solicitation
- The 2026 law does not limit confidentiality agreements, customer non-solicits or employee non-solicits; the $70,000 ban covers only non-competes.
- Overbroad covenants
- Courts may narrow an overbroad covenant to what's reasonable
Profession-specific rules
- LimitedFor providers licensed under Title 63 chapters 3-6, 8, 9 and 11 (including physicians), a covenant is deemed reasonable if in a signed writing, 2 years or less, and limited to the greater of a 10-mile radius or the county of the primary practice site (or to facilities where the employer provided services). T.C.A. 63-1-148
- LimitedThe health-care safe harbor in 63-1-148 does not apply to physicians who specialize in emergency medicine. T.C.A. 63-1-148(d)
Recent and pending changes
- July 1, 2026: Public Chapter 934 (HB 1034 / SB 995, signed May 7, 2026) takes effect: $70,000 pay floor for non-competes and statutory time presumptions, for agreements entered, renewed or amended on or after this date. 2026 Pub. Ch. 934
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Tennessee?
Void below $70,000 pay since July 1, 2026; 2 years presumed OK. Since July 1, 2026, Tennessee employers may not require, request or enforce a non-compete with an employee whose annualized compensation is under $70,000 (hourly workers: rate x 40 x 52). For covenants that are allowed, courts presume a post-employment restraint of two years or less reasonable and a longer one unreasonable, and may modify a covenant to make it reasonable. Customer and employee non-solicits and confidentiality agreements remain enforceable. Health-care provider covenants are deemed reasonable within statutory limits (2 years; 10 miles or the county).
Is there a salary threshold for non-competes in Tennessee?
Yes — $70,000. Annualized compensation (wages, salary, commissions, nondiscretionary bonuses and other pay) of less than $70,000; hourly rate x 40 x 52
How long can a non-compete last in Tennessee?
Rebuttable presumption: 2 years or less reasonable, longer unreasonable (employees and independent contractors); 3 years for distributors and franchisees; sale of a business: longer of 5 years or the payout period
Did the FTC ban non-competes in Tennessee?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Pay threshold / worker limits): Colorado, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Tennessee? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Tennessee.