Can an employer change an employee's hourly wage without prior notice or agreement?

As of September 2025, non-compete agreements are governed almost entirely by state law. The Federal Trade Commission’s 2024 rule banning most non-competes was vacated by a federal court, and the FTC dismissed its appeals in September 2025. That rule has no legal effect today. Employers must analyze enforceability under the laws of the state where the employee works. General Standards Courts in states that allow non-competes usually apply a four-part framework. First, the restriction must protect a legitimate business interest such as trade secrets, confidential information, customer goodwill, or recouping significant training investments. Second, the agreement must be reasonable in scope. Duration is typically upheld if it’s between six months and one year, with two years sometimes permitted for employees with access to highly sensitive information. Third, the geographic reach must reflect the employee’s actual influence. A regional sales manager might reasonably be restricted within their sales territory, but a nationwide restriction is rarely upheld unless the business operates nationally. Fourth, there must be adequate consideration. A job offer is usually sufficient for a new hire. For existing employees, most states require something more, such as a raise, bonus, equity grant, or promotion. State Variations Enforceability depends heavily on jurisdiction. California, Minnesota, Oklahoma, and North Dakota prohibit most employment-related non-competes. The District of Columbia bans non-competes for covered employees but allows them for “highly compensated” employees if salary thresholds and notice requirements are satisfied. Illinois prohibits non-competes for employees earning less than $75,000 and non-solicits for those earning less than $45,000, with both thresholds scheduled to increase every five years. Washington prohibits non-competes for employees earning below an indexed threshold, which for 2025 is $123,394.17 for employees and $308,485.43 for independent contractors. Colorado allows non-competes only for highly compensated workers tied to trade secret protection and imposes civil penalties for violations. Massachusetts requires employers to provide either garden-leave pay or other mutually agreed consideration, as well as advance notice and specific contractual language. Florida and Texas remain relatively favorable to employers. Florida’s CHOICE Act, effective July 2025, creates a presumption of enforceability for employees earning more than twice the mean annual wage in the county of employment, which currently falls between $80,000 and $100,000 depending on location. Texas continues to enforce non-competes that are “ancillary to” an otherwise enforceable agreement and reasonable in time, area, and scope. 2025 Legislative Changes Several states enacted new restrictions this year for healthcare professionals. Louisiana’s Act 273 limits physician non-competes to three years for primary care physicians and five years for others, with geographic restrictions tied to the parish of practice and two contiguous parishes. Maryland’s House Bill 1388 prohibits non-competes for healthcare providers earning $350,000 or less and limits non-competes for higher earners to one year and 10 miles. Pennsylvania’s Fair Contracting for Health Care Practitioners Act, effective January 2025, voids most non-competes longer than one year for covered practitioners but allows them in connection with the sale of a practice. Drafting Considerations To increase the chances of enforceability, tailor the agreement to the employee’s actual role and responsibilities. Define restricted activities with precision. For example, prohibit solicitation of clients the employee serviced in the past year rather than a blanket ban on working in the industry. Limit the geographic scope to the area where the company does business or where the employee had influence. Use a duration tied to the legitimate interest you’re protecting. Document the consideration provided if the agreement is signed mid-employment. Include a severability or reformation clause, but don’t assume a court will automatically rewrite an overbroad provision. Comply with procedural rules: Massachusetts requires ten business days’ notice before the start date, Washington requires disclosure before an offer is accepted, and other states have mandatory notices. For multi-state workforces, use jurisdiction-specific riders rather than one universal agreement. Alternatives and Complements Because non-competes are increasingly limited, employers should use complementary protections. Confidentiality and trade secret agreements are enforceable nationwide. Non-solicitation provisions are often easier to enforce, though some states impose income thresholds for these as well. Garden-leave provisions, where the employee is paid during the restricted period, can strengthen enforceability and may be required in certain jurisdictions. Training-repayment agreements are another tool but must be drafted carefully to avoid appearing punitive. The Final Analysis If you’re weighing whether a non-compete or a related restriction is right for your business, it’s smart to have an attorney review the agreement before relying on it. State laws differ widely, and even well-intentioned clauses can be struck down if they’re not drafted carefully. On Contracts Counsel, you can connect with an experienced employment lawyer who can draft or refine an agreement that protects your interests while complying with current legal standards.

I'm a Washington State attorney and my answer does not constitute legal advice, and no attorney/client relationship has been formed. If the person working for you will be working remotely from his or her state, the employment law of that state will govern whether the person will be considered an employee or indepedent contractor. Regardless of where that person works, what will be most important is how your contract with that person is written, and how much you try to control the person's work hours, duties, and so forth. Speaking generally, an independent contractor should be given certain work, and a dealine and expectations, and be allowed to work at 2:00 a.m. or 2:00 p.m. and report amount of time worked, such as 8/13/23 1.6 hours. If you have set times for work, such as 8:00 a.m. - 5:00 p.m. Monday through Friday, a court will be more likely to find that the person is an employee, not an independent contractor. If you will be using a person to work in another state, I highly recommend that you consult with an employment attorney in that state to review any paperwork you use, such as an employment contract or work contract with an independent contractor. You can find such attorneys through "lawyer referral" through the state bar association in most states, or you can try finding employment attorneys through this national organization: NELA.org Although the analysis of an employee's/independent contractor will vary from state to state, here are two articles from the US Department of Labor that may provide some general guidance to you. https://www.dol.gov/agencies/whd/flsa/misclassification and https://www.dol.gov/agencies/whd/fact-sheets/13-flsa-employment-relationship I hope that I have been of help. I am an employment attorney in Washington State, and can review documents for Washington State but generally do not do any document drafting.

If you are "non-exempt" and thereby entitled to overtime. Determining whether a worker is an "exempt" employee and not entitled to overtime requires application of the law to the facts. For instance, an "exempt" executive employee are paid not less than $455 per week, have their primary duty to manage part of the busisess, regularly direct the work of two or more other employees, and have the authority to hire or fire other employees or to make recommendations about hiring and firing taken into account by their employers. An "exempt" administrative employee, are also paid at least $455 a week and has the primary duty of the performance of office or non-manual work directly related to the management or general business operations of the employer or its customers--and is an employee whose primary duty for the employer involves exercising their discretion and independent judgment with respect to matters significant to the employer. It's not always easy to determine if someone is a managerial or administrative employee however and it can be a gray area. There are lots of examples of overtime exemptions such as computer and creative professionals, outside sales people, some truck drviers, some mechanics and some people working at auto dealerships. You may be non-exempt and eligible for overtime under the law if you are a paid a salary based on a 40 hour work week but work more than 40 hours. If you are eligible for overtime there are laws protecting you from retaliation for complaining about not being paid overtime.

Short answer: Probably no, non-compete and non-solicitation clauses are not usually enforceable on an employee in California. Long Answer: Regardless of the choice of law provision in your contract, if an enforcement action is brought against you in California, the California courts will dismiss it as it goes against the "public policy of the state" unless your employer can make a really compelling case. Most states respect the stated public policy of other states when deciding matters against their citizens, so even if the case was brought in another states courts your soon to be former employer would probably be powerless to get a judgement enforcing your non-compete.

There is no requirement under California law that a company pay severance to a terminated employee. Your severance pay will be controlled by either your employment agreement or employee handbook. However there are certain things, like paying you your final paycheck immediately that your company will be required to do under California law.