Tennessee non compete law enforces non competes only when they are reasonable: tennessee has no general non compete statute; courts disfavor non competes but enforce one that is reasonable in time and area and protects a legitimate interest beyond ordinary competition (special training, trade secrets, customer relationships), and they may modify an overbroad covenant.
For health-care providers a 2007 statute deems a written restriction reasonable if it lasts no more than two years and covers no more than the greater of a 10-mile radius or the county of the primary practice site — and it does not bind a provider who has been with the employer six years or more.
This guide gives the exact Tennessee non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with Tennessee Department of Labor and Workforce Development, Labor Standards Unit or an attorney before you rely on it.
Tennessee Non Compete Law at a Glance
| Status | Enforceable if reasonable (common law) |
| Income threshold | No earnings threshold |
| Statute | Common law (Central Adjustment Bureau v. Ingram, 678 S.W.2d 28 (Tenn. 1984)); Tenn. Code 63-1-148 (health-care providers, 2007, expanded 2011) |
| Notice / consideration | Initial employment is consideration; continued at-will employment for an appreciable length of time can support a covenant signed mid-employment (Central Adjustment Bureau) |
| Carve-outs | Health-care providers (physicians, osteopaths, podiatrists, chiropractors, dentists, optometrists, psychologists): 2-year / 10-mile-or-county limits, not… |
| Overbroad terms | reform — Tennessee courts may modify an overbroad covenant, though they decline where the overreach is egregious |
| In effect since | common law; 63-1-148 effective 2007 (Public Chapter 487), amended 2011 |
In This Tennessee Non Compete Law Guide:
Is a Non Compete Enforceable Under Tennessee Non Compete Law?
Tennessee has no general non compete statute; courts disfavor non competes but enforce one that is reasonable in time and area and protects a legitimate interest beyond ordinary competition (special training, trade secrets, customer relationships), and they may modify an overbroad covenant.
For health-care providers a 2007 statute deems a written restriction reasonable if it lasts no more than two years and covers no more than the greater of a 10-mile radius or the county of the primary practice site — and it does not bind a provider who has been with the employer six years or more. The statute is Common law (Central Adjustment Bureau v. Ingram, 678 S.W.2d 28 (Tenn.
1984)); Tenn. Code 63-1-148 (health-care providers, 2007, expanded 2011). The carve-outs matter: health-care providers (physicians, osteopaths, podiatrists, chiropractors, dentists, optometrists, psychologists): 2-year / 10-mile-or-county limits, not binding after six years of service; hospitals have separate statutes (63-6-204, 68-11-205); a June 2026 federal ruling left open whether a broader provider covenant is void.
Tennessee Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with Tennessee Department of Labor and Workforce Development, Labor Standards Unit or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Enforceable if reasonable (common law) |
| What the rule says | Tennessee has no general non compete statute; courts disfavor non competes but enforce one that is reasonable in time and area and protects a legitimate interest beyond ordinary competition (special training, trade secrets, customer relationships), and they may modify an overbroad covenant. For health-care providers a 2007 statute deems a written restriction reasonable if it lasts no more than two years and covers no more than the greater of a 10-mile radius or the county of the primary practice site — and it does not bind a provider who has been with the employer six years or more. |
| Income threshold | No earnings threshold |
| Statute | Common law (Central Adjustment Bureau v. Ingram, 678 S.W.2d 28 (Tenn. 1984)); Tenn. Code 63-1-148 (health-care providers, 2007, expanded 2011) |
| Notice or consideration rule | Initial employment is consideration; continued at-will employment for an appreciable length of time can support a covenant signed mid-employment (Central Adjustment Bureau) |
| Carve-outs | Health-care providers (physicians, osteopaths, podiatrists, chiropractors, dentists, optometrists, psychologists): 2-year / 10-mile-or-county limits, not binding after six years of service; hospitals have separate statutes (63-6-204, 68-11-205); a June 2026 federal ruling left open whether a broader provider covenant is void |
| What a court does with an overbroad term | reform — Tennessee courts may modify an overbroad covenant, though they decline where the overreach is egregious |
| In effect since | common law; 63-1-148 effective 2007 (Public Chapter 487), amended 2011 |
The Reasonableness Test Under Tennessee Non Compete Law
Tennessee courts generally enforce a non compete only if it protects a legitimate business interest, such as trade secrets, confidential information, or customer goodwill the worker built with the employer’s support. A court weighs whether the worker received consideration, the threat to the employer, the economic hardship to the worker, and whether enforcement serves the public interest.
The time limit and geographic area must be no broader than needed to protect that interest. A covenant that only shields the employer from ordinary competition is usually not enforced.
For agreements signed, renewed, or amended on or after July 1, 2026, a restriction of 2 years or less after employment ends is presumed reasonable, and a longer one is presumed unreasonable (both presumptions can be rebutted). Areas limited to the territory or customers the worker actually served are upheld more often than statewide or nationwide bans, and courts may narrow an overbroad covenant instead of voiding it.
With an overbroad term the court will reform — Tennessee courts may modify an overbroad covenant, though they decline where the overreach is egregious.
Tennessee Non Compete Law If You Were Fired or Laid Off
Tennessee’s highest court has said that an employer who fires a worker arbitrarily, capriciously, or in bad faith may be unable to enforce the non compete, while a covenant is usually enforceable after a resignation or a good-faith termination. A layoff does not automatically void the agreement, so the reason for the separation and the facts around it matter and should be confirmed with a lawyer.
What the Employer Must Give Under Tennessee Non Compete Law
Initial employment is consideration; continued at-will employment for an appreciable length of time can support a covenant signed mid-employment (Central Adjustment Bureau) Tennessee courts have held that keeping a job for a substantial period after signing can be enough consideration for a non compete signed mid-employment, even without a raise or bonus. If a worker was let go soon after signing, a court may find the consideration was not enough.
Non Solicit and Non Disclosure Agreements Under Tennessee Non Compete Law
A non solicit bars contacting the former employer’s clients or recruiting its staff, and a non disclosure agreement bars sharing confidential information. Neither one stops a worker from taking a job with a competitor. The 2026 Tennessee law expressly leaves those agreements outside its new limits, so they generally stay easier to enforce than a full non compete.
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If You Already Signed One: Tennessee Non Compete Law in Practice
Read the agreement for the exact time limit, area, and covered work, and check what triggers it and when it was signed, renewed, or amended, since the 2026 rules apply only to agreements made on or after July 1, 2026. Before accepting a new offer, ask the former employer for a written release or written confirmation that the new role does not compete.
A Tennessee employment lawyer can review the agreement and the job offer before a start date is set.
An employer can ask a Tennessee court for an injunction that stops a worker from doing the competing work, and it can seek money damages for proven losses. Attorney fees are usually recoverable only if the signed agreement provides for them, and a court can shorten or narrow an overbroad restriction rather than throw it out.
The Federal Rule and Tennessee Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Tennessee non compete law controls.
In 2026 Tennessee enacted House Bill 1034, its first general employment non compete statute, which took effect July 1, 2026 for agreements signed, renewed, or amended on or after that date. It created a rebuttable presumption that restrictions of 2 years or less are reasonable, gave courts express authority to narrow overbroad covenants, and left confidentiality and non solicitation agreements outside its limits.
Other Tennessee Non Compete Law Rules to Know
Tennessee has separate statutes for some professions. Physician non competes are limited by statute (generally 2 years and a set mileage or county radius, with emergency-medicine physicians exempt), and broadcasting employers generally cannot enforce non competes against broadcast employees. Confirm the current rule for your field with a Tennessee lawyer.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
Tennessee — the bottom line
- Tennessee non compete law is a reasonableness test decided case by case — the first thing to check is which side of the line your agreement falls on.
- Under Tennessee non compete law, an overbroad term is reform — Tennessee courts may modify an overbroad covenant, though they decline where the overreach is egregious — the words of your own agreement decide more than the headline rule.
- Tennessee non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in Tennessee?
Sometimes. Tennessee has no general non compete statute; courts disfavor non competes but enforce one that is reasonable in time and area and protects a legitimate interest beyond ordinary competition (special training, trade secrets, customer relationships), and they may modify an overbroad covenant.
For health-care providers a 2007 statute deems a written restriction reasonable if it lasts no more than two years and covers no more than the greater of a 10-mile radius or the county of the primary practice site — and it does not bind a provider who has been with the employer six years or more.
Is there an income threshold under Tennessee non compete law?
No. Tennessee has no earnings threshold; enforcement turns on whether the agreement is reasonable.
What does a Tennessee court do with an overbroad non compete?
Reform — Tennessee courts may modify an overbroad covenant, though they decline where the overreach is egregious.
Can my employer enforce a non compete in Tennessee after firing me?
Tennessee’s highest court has said that an employer who fires a worker arbitrarily, capriciously, or in bad faith may be unable to enforce the non compete, while a covenant is usually enforceable after a resignation or a good-faith termination.
I signed a non compete in Tennessee and have a new offer — what should I do?
Read the agreement for the exact time limit, area, and covered work, and check what triggers it and when it was signed, renewed, or amended, since the 2026 rules apply only to agreements made on or after July 1, 2026.
Official Tennessee Sources & Resources
- Tennessee Department of Labor and Workforce Development, Labor Standards Unit: https://www.tn.gov/workforce/employees/labor-laws.html
- Tennessee non compete statute (Common law (Central Adjustment Bureau v. Ingram, 678 S.W.2d 28 (Tenn. 1984)); Tenn. Code 63-1-148 (health-care providers, 2007, expanded 2011)): https://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=HB1034&GA=114
- Verified source: https://www.butlersnow.com/news-and-events/court-ruling-raises-questions-about-tennessee-healthcare-provider-noncompete-statute
- Verified source: https://www.bassberry.com/news/putting-physician-non-competes-on-the-same-page-sort-of-06-24-2011/
- Verified source: https://ogletree.com/?p=7157
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- Tennessee bar lawyer referral: https://www.tba.org/index.cfm?pg=find-an-attorney
This Tennessee non compete law guide was last verified against official Tennessee sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More Tennessee Workplace Rights Guides
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- Tennessee At Will Employment Law: The Exceptions
- Tennessee Labor Laws: Every Rule in One Place
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Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.