This guide covers federal law, the state statutes that reach NPs and other advanced practice registered nurses (APRNs), and the contract terms to check before you sign. It is general information, not legal advice.
As of October 2026, whether a nurse practitioner non compete clause is enforceable depends on state law and the contract's wording. The FTC's nationwide ban never took effect and was removed from federal regulations on February 12, 2026. Several states now void or limit noncompetes for NPs, including Virginia (from July 1, 2026), Maine, Colorado, Montana, Minnesota and California, while Texas allows them only under strict conditions.
Are noncompete agreements enforceable for nurse practitioners?
Sometimes, and the answer turns on the state whose law governs the contract. A noncompete (also called a covenant not to compete) is a contract term that bars you from practicing within a set area, for a set time, after you leave an employer.
In some states a noncompete against an NP is void outright. In others it is allowed if it meets conditions, such as a buyout option, a short duration or a small radius. Elsewhere, enforceability depends on that state's general contract and noncompete law, so identical contracts can fare differently in two states.
Three questions decide most cases: which state's law applies (look for a choice of law clause), when the contract was signed or renewed (every state law in the table below except California's applies only to agreements made, extended or renewed on or after its effective date), and whether you fall into an exception, such as owning part of the practice.
Did the FTC ban noncompete agreements?
No. The Federal Trade Commission (FTC) issued a rule in 2024 that would have banned most noncompetes, but it never took effect, and it no longer exists. Here is the dated sequence, from the FTC and the Federal Register:
| Date | What happened |
|---|---|
| August 20, 2024 | A federal district court in Texas issued an order stopping the FTC from enforcing the rule (FTC: Noncompete Rule), in Ryan, LLC v. FTC. |
| September 5, 2025 | The FTC took steps to dismiss its appeal in the Fifth Circuit (FTC: Noncompete Rule). |
| September 10, 2025 | FTC Chairman Andrew Ferguson sent letters to several large healthcare employers and staffing firms urging a comprehensive review of their noncompetes and other restrictive agreements (FTC press release). |
| February 12, 2026 | A final rule in the Federal Register removed the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations, effective that day (91 FR 6507). |
The FTC has not left the field. Its September 2025 release pointed to noncompetes that may unreasonably limit options "for vital roles like nurses, physicians, and other medical professionals," and said it has authority under Section 5 of the FTC Act to investigate noncompetes that are "unjustified, overbroad, or otherwise unfair" (FTC, September 10, 2025). That is a power to investigate particular employers, not a rule that voids your clause, so state law remains the controlling question.
Which states restrict noncompetes for nurse practitioners?
The table lists state laws that reach NPs or APRNs, each checked against the statute or bill text on October 6, 2026. It is not exhaustive: other states have laws on health care workers or noncompetes generally, so a state missing here is not a state without rules.
| State | Law | What it does for NPs | Effective |
|---|---|---|---|
| Virginia | SB 128 (2026 Acts ch. 1114), Code 40.1-28.7:8 | Bars employers from entering into, enforcing or threatening to enforce a noncompete with anyone licensed, registered or certified by the Board of Nursing (and five other boards). Exceptions: sale of a business, repayment of certain recruitment costs, narrow nonsolicitation. Does not affect agreements entered into or renewed before July 1, 2026. | July 1, 2026 |
| Maine | LD 2200 (Public Law ch. 718), 26 MRSA 599-A | An employer may not require or permit a noncompete with a health care practitioner who has no ownership interest in the employer. Applies to agreements entered into or renewed on or after the effective date. | July 29, 2026 |
| Iowa | HF 2254 (2026 Acts ch. 1173), Code 262.9 | Requires a policy barring noncompete clauses in University of Iowa Hospitals and Clinics contracts with advanced registered nurse practitioners (ARNPs), RNs, LPNs, physicians, PAs and pharmacists. Applies only to that employer, for contracts entered into, extended or renewed from June 2, 2026. | June 2, 2026 |
| Colorado | SB 25-083 (Session Laws ch. 366) | Takes noncompetes that restrict the practice of advanced practice registered nursing out of the highly compensated worker exception, with a limited exception for some minority owners. Also protects telling former patients that you continue to practice and how to reach you. Applies to covenants entered into or renewed from August 6, 2025. | August 6, 2025 |
| Texas | SB 1318, Bus. and Com. Code 15.501 | Covers nurses licensed under Occupations Code Chapter 301. A noncompete is enforceable only with a buyout capped at total annual salary and wages, a term ending within one year of termination, a radius of no more than five miles from where the practitioner primarily practiced, and clear written terms. | September 1, 2025 |
| Montana | MCA 28-2-724, amended by HB 198 (2025) | A contract may not restrict a registered nurse or APRN from practicing in any area for any period after leaving, or from treating or soliciting current patients. Exception for the sale of a practice. | 2025, on approval of HB 198 (contracts made or renewed on or after that date) |
| Minnesota | Stat. 181.988 | Voids noncompete covenants for employees, a term the statute defines to include independent contractors, except in the sale or dissolution of a business. Nonsolicitation and nondisclosure agreements are not covered. | July 1, 2023 |
| California | Bus. and Prof. Code 16600 | Voids any contract restraining anyone from a lawful profession, to that extent. Not limited to health care. | Long-standing; last amended January 1, 2024 |
Virginia's law was approved May 14, 2026, and took effect July 1 under the state constitution's rule for regular session laws (Va. Const. art. IV, sec. 13). Maine's July 29, 2026 date is the general effective date for that session's nonemergency laws (Laws of the State of Maine, 2026). For licensure in these states, see the guides for Virginia and Texas.
What other contract clauses can still apply?
A noncompete ban usually leaves the rest of your contract standing. Minnesota's statute says so directly: voiding a noncompete does not void the other provisions of the agreement (Minn. Stat. 181.988). Expect these terms to survive in some form:
- Nonsolicitation. A promise not to solicit the employer's patients, clients or staff. Virginia permits a narrow version covering customers you had material contact with. Montana, by contrast, bars contracts from restricting a covered nurse from soliciting or treating current patients.
- Confidentiality. Nondisclosure terms protecting patient information, trade secrets and business data. Minnesota excludes these from its definition of a noncompete.
- Repayment of sign-on, relocation or training money. Virginia allows repayment of recruitment costs such as relocation, bonuses and training when a health care professional leaves within five years of starting.
- Notice periods. How many days of notice you owe before leaving, and whether the employer owes you the same.
- Patient notice and choice. Colorado and Virginia protect telling former patients that you continue to practice and how to reach you, and Maine requires enforceable health care noncompetes to recognize a patient's right to choose a practitioner.
Red flags in a nurse practitioner contract
A restrictive clause is a red flag when it is broader than the employer's legitimate interest or when its trigger is one sided. Watch for these in any offer, W-2 or 1099:
- The noncompete applies however the job ends, including if you are let go without cause.
- The radius is measured from every affiliated location, not from where you actually practiced. A health system with many sites can turn a modest radius into a whole region.
- The restricted activity is "nursing" or "health care" in general, rather than the specialty or setting you actually worked in.
- There is no buyout, or the buyout is an undefined damages figure instead of a stated amount.
- A choice of law clause points to another state. Minnesota, for example, bars requiring an employee who primarily lives and works there to give up Minnesota law as a condition of employment (Minn. Stat. 181.988); not every state has that protection.
- Repayment terms that never decline over time, so leaving after three years costs as much as leaving after three months.
- Notice periods that bind only you, while the employer can end the contract on short notice.
- Restrictions that outlast a short contract, such as a two-year noncompete on a one-year locum assignment.
If you are weighing contractor work, the 1099 contract guide covers the terms to negotiate, and the 1099 vs W-2 comparison prices the two ways of working side by side. Tail coverage also changes the cost of leaving; see the NP malpractice insurance guide.
What to negotiate in a nurse practitioner noncompete
A restrictive covenant is negotiable, like pay and schedule. Ask for the clause in writing early, then work through these levers:
- Radius. Tie it to the one site where you practice, measured in road miles or a stated straight line, and keep it small. Texas, for reference, caps covered noncompetes at a five-mile radius (SB 1318).
- Duration. Shorter is better. Texas caps covered noncompetes at one year after the job ends.
- Triggers. Ask that the clause fall away if you are terminated without cause, if the employer does not renew, or if the employer breaches the contract.
- Scope. Limit it to your specialty and setting, so a psychiatric NP is not barred from unrelated primary care work.
- Telehealth carve-out. Ask for written language that remote care for patients outside the radius, or for a different employer's patients, is not restricted.
- Buyout. A stated, reasonable buyout amount turns an open-ended risk into a known price.
- Per diem and moonlighting. If you plan to pick up locum tenens or telehealth shifts, get written permission now.
For scripts on raising contract terms without souring the offer, see the NP salary negotiation guide, and use our NP interview questions to raise the restrictive covenant before the offer stage.
What this means for your job search and for employers
For NPs, read the restrictive covenant before you commit. A state that voids noncompetes gives you more freedom to leave later, but only for agreements within the statute's dates and terms. When you search current NP jobs, note the state and ask for the full agreement before the offer call. Set up job alerts so you can compare offers rather than accept the first one under pressure.
For employers, several states changed their rules in 2025 and 2026. Virginia's statute reaches threatening to enforce a noncompete, not only enforcing one, and provides a civil penalty of $10,000 for each violation (2026 Acts ch. 1114). Review templates state by state with counsel. Our employer resources cover hiring practices for NP roles.
Before signing anything, have an employment attorney licensed in the state that governs your contract review it.
Frequently asked questions
Are noncompete agreements enforceable for nurse practitioners?
It depends on the state. Some states void noncompetes for NPs, including Virginia (for agreements made or renewed from July 1, 2026), Montana, Minnesota and California. Maine bars them for health care practitioners who do not own part of their employer, and Texas allows them only with a buyout, a one-year limit and a five-mile radius. In other states, enforceability depends on that state's general noncompete law. An employment attorney in your state can tell you how it applies to your contract.
Did the FTC ban noncompete agreements?
No. The FTC issued a nationwide ban in 2024, but a federal court stopped it on August 20, 2024. The FTC moved to dismiss its appeal on September 5, 2025, and a Federal Register rule removed the regulation effective February 12, 2026. The FTC says it can still investigate specific noncompetes under Section 5 of the FTC Act, and on September 10, 2025 it sent warning letters to several large healthcare employers and staffing firms.
Which states restrict noncompetes for nurse practitioners?
As of October 6, 2026, statutes reaching NPs or APRNs include Virginia (effective July 1, 2026), Maine (July 29, 2026), Iowa for University of Iowa Hospitals and Clinics only (June 2, 2026), Colorado (August 6, 2025), Texas with conditions (September 1, 2025), Montana, and the general bans in Minnesota and California. This list is not exhaustive, and every law has exceptions and effective date limits.
What is a reasonable noncompete radius for an NP?
There is no single legal answer outside states that set one. Texas caps covered health care noncompetes at a five-mile radius and one year. Elsewhere, what counts as reasonable depends on that state's law and the facts of your job. In negotiation, aim for a small radius measured from the one site where you practice, not from every affiliated location.
Can a noncompete stop me from doing telehealth?
It can if its wording reaches remote care, for example by restricting where patients are located or barring any work for a competitor. Before signing, ask for a written carve-out for remote work outside the radius. If you already signed, have an attorney in your state read the exact language before you take a telehealth role.
Should a lawyer review my NP employment contract?
Yes. A noncompete is only one clause, and repayment, notice, nonsolicitation, malpractice tail and termination terms can cost as much. State law decides what is enforceable, and statutes carry exceptions and effective dates that a general article cannot apply to your facts. An employment attorney licensed in the state that governs your contract can review it before you sign.
Sources
- Federal Trade Commission: Noncompete Rule (status page, checked October 6, 2026)
- Federal Trade Commission: FTC Chairman Ferguson Issues Noncompete Warning Letters to Healthcare Employers and Staffing Companies (September 10, 2025)
- Federal Register: Revision of the Negative Option Rule, Withdrawal of the CARS Rule, Removal of the Non-Compete Rule To Conform These Rules to Federal Court Decisions, 91 FR 6507 (published and effective February 12, 2026)
- Code of Virginia: 40.1-28.7:8, Covenants not to compete (as amended by 2026 Acts ch. 1114)
- Virginia Acts of Assembly: 2026 Reconvened Session, Chapter 1114 (SB 128) (approved May 14, 2026)
- Constitution of Virginia: Article IV, Section 13 (effective date of regular session laws)
- Maine Legislature: LD 2200, Public Law ch. 718 (approved April 15, 2026)
- Maine Legislature: 26 MRSA 599-A, Noncompete agreements (current statute, as amended by Public Law ch. 718)
- Maine Revisor of Statutes: Laws of the State of Maine, Second Regular Session of the 132nd Legislature (general effective date July 29, 2026)
- Iowa Legislature: 2026 Iowa Acts ch. 1173 (HF 2254) (approved June 2, 2026)
- Colorado General Assembly: SB 25-083, Limitations on Restrictive Employment Agreements (signed June 3, 2025; effective August 6, 2025)
- Texas Legislature: SB 1318, enrolled version (effective September 1, 2025)
- Montana Code Annotated: 28-2-724 (current code)
- Montana Legislature: HB 198, 2025 Laws ch. 131 (2025)
- Minnesota Revisor of Statutes: 181.988 (current statute)
- Minnesota Revisor of Statutes: 2023 Laws ch. 53 (article 6, section 1 effective July 1, 2023)
- California Legislative Information: Business and Professions Code 16600 (last amended effective January 1, 2024)