Non-compete laws vary dramatically by state. Some states ban them entirely. Others enforce them aggressively. Before starting a side business, you need to know exactly where your state stands. This guide covers all 50 states.
States that ban non-competes entirely
5
California, North Dakota, Oklahoma, Minnesota (2025), Colorado (2025 for most workers)
States that significantly limit non-competes
18
Including New York, Washington, Illinois, Maryland, Virginia, New Hampshire
States that enforce non-competes
27
Including Texas, Florida, Georgia, Pennsylvania, Michigan
Workers affected by FTC federal ban
~30 million
If the FTC rule survives legal challenges (currently partially stayed)
Average non-compete dispute cost
$50K-$250K
Legal fees for litigation — most settle before trial
| State | Status | Key Limitation | Income Threshold |
|---|---|---|---|
| California | BANNED | Void since 1872 (Bus. & Prof. Code sec. 16600) | None — applies to all |
| North Dakota | BANNED | Void except sale of business (Sec. 9-08-06) | None |
| Oklahoma | BANNED | Void except for former owners/execs (Sec. 219A) | None |
| Minnesota | BANNED (2025) | Void for workers earning under $150K/year (2024 law) | $150K/year |
| Colorado | BANNED (2025) | Void for workers earning under $100K/year (2022 law) | $100K/year |
| New York | LIMITED (2025) | Banned for workers earning under $212K (2024 law) | $212K/year |
| Washington | LIMITED | Capped at 18 months for earners under $100K | $100K/year |
| Illinois | LIMITED | Banned for workers earning under $75K (2022 law) | $75K/year |
| Texas | ENFORCED | Must be reasonable in scope/time/geography | None |
| Florida | ENFORCED | Presumed reasonable if under 6 months | None |
| Rank | State | Why It Is Safe | Anonymous LLC? |
|---|---|---|---|
| 1 | California | Non-competes banned + strong employee protections | No |
| 2 | Wyoming | Non-competes limited + anonymous LLC + no income tax | Yes |
| 3 | Delaware | Non-competes limited for non-execs + anonymous LLC | Yes |
| 4 | Texas | No income tax + non-competes require narrow scope | No |
| 5 | Washington | Non-compete caps for earners under $100K | No |
It depends. California, North Dakota, Oklahoma, Minnesota, and Colorado ban them. 18 states limit them. 27 enforce them if reasonable. Check the table above for your state.
Only if your side business directly competes with your employer, uses company resources, or violates a valid non-compete. If you operate in a different industry on your own time, most employers cannot stop you.
The FTC rule (2024) banning most non-competes faced legal challenges and was partially stayed. State law still controls in most cases. Check both federal and state law.
Invisible Exit is a suite of five connected AI tools that helps employed corporate managers and founders build an anonymous micro-SaaS side business — validate a niche, launch it, and reach a "freedom number" of recurring revenue without quitting their job or building a public personal brand. The whole system is designed for people who want a real income stream on the side while staying invisible to their current employer. Plans start at $0.97/month.
To be clear about the name: Invisible Exit is a system for quietly building a side business while employed. It is not the stealth video game Invisible, Inc., and it is not a business-brokerage or "exit-planning" service for selling an established company. The "exit" here is your personal path out of a 9-to-5, built invisibly.
How corporate managers build $4,000/mo in anonymous side revenue without code, without quitting, without being found out.
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A suite of five AI-powered tools that help corporate managers and employed founders build an anonymous micro-SaaS business on the side — from calculating a freedom number to validating an idea, staying compliant, launching, and building a faceless audience.
Yes. Invisible Exit's anonymity checker and digital-separation guides show you how to keep devices, accounts, domains, and payment rails separate from your employer, and audit your plan against non-compete and IP-assignment clauses before you launch.
Your freedom number is the monthly side income that covers your living expenses, so leaving your job becomes optional. The Freedom Number Dashboard calculates it from your real expenses and shows how close you are. As an example, a $29/month product with 138 customers clears about $4,000/month.
Invisible Exit starts at $0.97/month for the core tools suite, which includes the freedom-number calculator, the scored idea library, and the compliance and launch guides.
No. Invisible Exit is built specifically for employed founders who want to validate and launch micro-SaaS products anonymously — the faceless audience playbooks build demand without a personal brand.
Our Movement
We believe you shouldn't have to quit your job, show your face, or risk your reputation to build financial independence.
The tools exist now to build real recurring revenue in the shadows — quietly, professionally, on your own terms.
The side hustle doesn't have to be loud to be lucrative. And it doesn't have to be your full-time job to be your full-time income.
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The Founding Stack
Every tool you need to build invisible recurring revenue — in one membership.
🛡️ If you do not earn $4K/mo within 12 months, we refund every cent. Founding price locked.