Do non-competes work for electricians in 2026?

A non compete for electricians rarely holds in 2026. The FTC rule is gone, several states void them, and Washington's ban starts June 30, 2027.

Updated October 19, 20267 min read8 sources

Photo: MTA Capital Construction Mega Projects, Wikimedia Commons (CC BY 2.0)

Mostly no. The FTC's national noncompete ban never took effect and was formally removed on February 12, 2026, so state law decides. Minnesota and North Dakota void most employee noncompetes, California and Oklahoma are reported to do the same, and Washington's ban starts June 30, 2027. Even where one is legal, it's a weak way to keep a J-man.

This is where the law stands as of October 2026. It's general information, not legal advice: before you put any restrictive clause in an offer, talk to your employment lawyer in the state where the man works.

01Is the FTC noncompete ban in effect?

No. The FTC itself says its rule "is not in effect and it is not enforceable."

Here's the timeline from the FTC's own rule page:

Date	What happened
August 20, 2024	A federal district court stopped the FTC from enforcing the rule
October 18, 2024	The FTC appealed
September 5, 2025	The FTC moved to dismiss its own appeal
February 12, 2026	Federal Register notice: "Removal of the Non-Compete Rule To Conform These Rules to Federal Court Decisions"

So there is no national ban and no national permission. Whether a noncompete can bind your journeyman depends on the state.

02Which states void noncompetes for employees?

A handful of states void nearly all employee noncompetes, and Washington joins them in 2027. As of October 2026:

State	The rule	Source
Minnesota	"Any covenant not to compete contained in a contract or agreement is void and unenforceable." Exceptions for selling or dissolving a business. Applies to agreements signed on or after July 1, 2023	Minn. Stat. 181.988; start date reported by Loio
North Dakota	A contract that restrains anyone "from exercising a lawful profession, trade, or business of any kind is to that extent void," with exceptions for selling or dissolving a business	N.D.C.C. 9-08-06
California	Reported to void employee noncompetes, with 2024 amendments reaching agreements signed in other states	Bus. & Prof. Code 16600, reported by Loio
Oklahoma	Reported to void general noncompetes but allow a bar on directly soliciting established customers	15 Okla. Stat. 217 to 219, reported by Loio
Washington	Today, void unless the employee earns over $126,858.83 (2026 figure). A law prohibiting noncompetes takes effect June 30, 2027	WA L&I; ESHB 1155, Chapter 149, 2026 Laws

The Washington line matters more than it looks. The median Washington electrician made $95,220 in May 2025, per the BLS. That's under the 2026 line, so for a typical J-man there, a noncompete is already void, and after June 30, 2027 the income line won't matter.

Every other state has its own rules, and they change. If you work in several states, a clause that holds in one may be void in the next.

03What's the difference between a noncompete, a non-solicit and an NDA?

They're three different tools, and the law treats them differently.

Noncompete. Says he can't work for a competitor, in an area, for a time after he leaves. This is the one states are voiding.
Non-solicit. Says he can't go after your customers (and sometimes your employees) after he leaves. Minnesota's statute says its ban doesn't cover nonsolicitation agreements. Washington's 2026 bill is titled "Prohibiting noncompetition agreements and clarifying nonsolicitation agreements," so expect new limits there.
Nondisclosure (NDA). Says he can't share your confidential information, like bid numbers, pricing or customer lists. Minnesota's ban also leaves these out.

Match the tool to the job. A J-man on the tools doesn't carry your bid book. Your estimator, your PM or your service manager might. That's where a non-solicit or an NDA, written for your state, can make sense.

Role	What he could take	Tool that fits, if any
Journeyman or apprentice	His skill, his buddies	None. Keep him with pay and work
Foreman	His crew	None that's reliable. Keep him with a path up
PM or estimator	Bid numbers, GC contacts	NDA, maybe a customer non-solicit
Service manager	Customer list, pricing	NDA, maybe a customer non-solicit

04Why a noncompete won't keep a J-man, even where it's legal

A noncompete only works if you're willing to enforce it, and enforcing it against a journeyman rarely pays.

You'd have to sue a hand. That means lawyer fees and months, over a man earning a wage. Compare that against what it costs when a journeyman quits, which is often in the low five figures.
It doesn't put him back on your job. Win or lose, the slot is empty today.
It costs you hires. In the 2026 AGC and NCCER survey, 87% of construction firms had openings for hourly craft. A licensed J-man with three offers can sign with the shop that doesn't ask for one.
It doesn't fix why he's leaving. One national electrical contractor told us a job "doesn't pay enough to hold these guys down to where they can stay long term until the job's over." No clause fixes a rate that's under the market.

05What keeps a journeyman instead

The things that keep a J-man are the things he'd lose by leaving.

A rate near the market. If a competitor offers $2 more, you'll want a plan, not a panic. See when a competitor offers your journeyman $2 more an hour.
The next job lined up. Hands leave when they expect to be short-termed. Tell them what's next.
A foreman worth working for. People leave foremen. Train yours.
Money for staying. A finish bonus paid on the last day of the job, or a referral bonus paid after six months.

We go deeper on each in how to keep good electricians from leaving and on outside recruiters in how to keep your crew from getting poached. For the rest of the paperwork side of hiring, see hiring law basics for electrical contractors.

If you're short-handed and tired of losing hands to the next job, apply here and we'll see if we can put 5 licensed electricians in front of you in 14 days.

Short-handed right now?

Apply in about a minute. If you qualify, you book a call and we see if we can put 5 licensed electricians in front of you. If we don't book you 5 in 14 days, you don't pay.

Apply now

FAQFAQs

Did the FTC ban noncompetes?

The FTC passed a rule in 2024, but a federal court stopped it before it took effect. The FTC dropped its appeal in 2025 and published a notice removing the rule on February 12, 2026. There is no federal noncompete ban in force.

Can a noncompete stop my journeyman from going to work for our GC?

In states that void employee noncompetes, like Minnesota and North Dakota, generally no. In other states it depends on the state's law and the wording. A customer non-solicit is a different clause from a noncompete, with its own rules.

Is a non-solicit the same as a noncompete?

No. A noncompete stops someone from working for a competitor. A non-solicit stops him from going after your customers or, in some versions, your employees. Minnesota's ban on noncompetes says it doesn't cover nonsolicitation agreements, and Washington's 2026 law addresses them separately.

What changes in Washington on June 30, 2027?

Washington's ESHB 1155, signed March 23, 2026, takes effect June 30, 2027. Its title is "Prohibiting noncompetition agreements and clarifying nonsolicitation agreements." Until then, a noncompete is void for employees who earn $126,858.83 or less in 2026, a line Washington L&I adjusts every year.

Will asking for a noncompete hurt my hiring?

It can. Working journeymen have options right now, and a clause he'd have to run past a lawyer is one more reason to sign somewhere else. If you want protection, keep it to the roles that touch customers and pricing.