Missouri Non-Compete Agreement
Missouri enforces reasonable employee non-compete agreements under common law when tied to trade secrets or customer contacts. Attorney review available.
Introduction
A non-compete agreement stops a former employee from competing with the business for a set period and area, and Missouri enforces one only to guard the employer's trade secrets or customer contacts, never to block ordinary competition. Missouri enforces employee non-competes, but its rule rests on common law rather than a single non-compete statute. Courts in Missouri generally enforce a covenant only to the extent it is reasonable in time and geographic scope and no broader than necessary to protect a legitimate business interest, meaning the employer's trade secrets or its customer contacts, not simply protection from ordinary competition. The employer bears the burden of proving the restraint is reasonable. The one statute in this area, RSMo Section 431.202, covers written covenants not to solicit, recruit, or hire employees and covenants protecting confidential information or customer relationships, and it conclusively presumes such a covenant reasonable if it lasts no more than one year; but subsection 3 says that statute does not create or affect the enforceability of employer-employee non-competes, which remain governed by common law. The general restraint-of-trade rule is RSMo Section 416.031. Missouri has no salary or income threshold that makes a non-compete valid or exempts a worker; a proposed $75,000 floor (HCS HB 1202) was not enacted. Courts in Missouri may narrow, or blue-pencil, an overbroad covenant rather than void it entirely. This page explains Missouri's rules and offers a template scoped to them. It is a state-law overview, not a promise that any given clause will hold up.
Key Things to Know
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A non-compete agreement is a contract in which one party, usually an employee, agrees not to compete with a business for a set time and area after the relationship ends. In Missouri a reasonable employee non-compete is enforceable under common law.
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Missouri enforceability rests on common law, not a dedicated non-compete statute. Courts in Missouri generally enforce a covenant only to the extent it is reasonable in time and geography and no broader than necessary to protect the employer's trade secrets or customer contacts, not mere competition. The employer must prove reasonableness.
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Missouri has no salary or income threshold that makes a non-compete valid or that exempts a worker. A reasonable covenant can be enforced at any income level. A proposed $75,000 floor (HCS HB 1202) was not enacted, so do not rely on it or import another state's dollar figure.
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There is no statutory maximum duration. Courts in Missouri have generally treated post-employment restrictions of up to about two years as reasonable, with geography limited to the area where the employer operates and the employee worked or held customer influence. Longer or broader restraints face greater scrutiny.
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Missouri has no advance-notice-before-signing statute for non-competes. On consideration, courts in Missouri generally treat continued at-will employment as enough to support a non-compete an existing employee signs after starting work; a separate new benefit is not strictly required.
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Courts in Missouri may modify, or blue-pencil, an overbroad covenant and enforce it as narrowed rather than voiding it, so long as it is not wholly unreasonable (see Whelan Security Co. v. Kennebrew, Mo. banc 2012). Certain RSMo 431.202 covenants signed by employees providing only secretarial or clerical services are carved out of that statute's one-year track.
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Because a non-compete must be reasonable and tied to a protectable interest, many Missouri employers also use a confidentiality or non-disclosure agreement and the Missouri Uniform Trade Secrets Act (RSMo Sections 417.450 to 417.467), plus the no-solicit covenants RSMo 431.202 expressly allows, to protect trade secrets and customer data.
Key decisions before you file
Before you file a Non-Compete Agreement in Missouri, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.
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Missouri Requirements for Non-Compete Agreement
In Missouri a reasonable employee non-compete is enforceable, but under common law rather than a dedicated statute. Courts in Missouri generally enforce a covenant only to the extent it is reasonable in time and geography and no broader than necessary to protect a legitimate business interest, and the employer bears the burden of proving reasonableness. A covenant that merely stifles competition is not enforceable in Missouri.
A Missouri non-compete must protect a legitimate, protectable interest. Missouri courts generally recognize two: the employer's trade secrets or confidential information, and its customer contacts, meaning the goodwill and customer relationships the employee developed at the employer's expense. A restraint aimed only at preventing ordinary competition, rather than protecting one of these interests, is unlikely to be enforced in Missouri.
Missouri has no wage or income threshold that makes a non-compete valid or that exempts lower-paid workers. A reasonable covenant can be enforced at any income level, subject to the common-law reasonableness test. A proposed bill, HCS HB 1202, would have voided non-competes for employees earning $75,000 or less, but it was not enacted. Do not rely on that figure or import another state's dollar threshold for Missouri.
There is no statutory maximum duration. Courts in Missouri have generally treated post-employment restrictions of up to about two years as reasonable, with geography limited to the area where the employer operates and the employee worked or held customer influence. In Whelan Security Co. v. Kennebrew (Mo. banc 2012) a two-year, 50-mile restraint was found reasonable for the employees at issue. Broader or longer restraints face greater scrutiny in Missouri.
Missouri has no advance-notice-before-signing statute for non-competes. On consideration, courts in Missouri generally treat continued at-will employment as sufficient to support a non-compete an existing employee signs after starting work, so a separate new benefit is not strictly required. Because this is a fact-specific common-law rule, it is prudent to document the consideration and have new hires sign at the outset.
Courts in Missouri generally have authority to modify, or blue-pencil, an overbroad covenant and enforce it as narrowed rather than voiding it, so long as it is not wholly unreasonable. In Whelan Security Co. v. Kennebrew (Mo. banc 2012) the Missouri Supreme Court narrowed an overbroad non-solicitation clause to the customers the employees had actually dealt with. Missouri courts will not, however, rebuild a wholly unreasonable restraint from scratch.
RSMo Section 431.202 separately authorizes written covenants not to solicit, recruit, or hire employees and covenants protecting confidential information or customer relationships; such a covenant is conclusively presumed reasonable if it lasts no more than one year. That statute expressly does not create or affect the enforceability of employer-employee non-competes (subsection 3), and its one-year track does not apply to employees who provide only secretarial or clerical services.
Because a non-compete must be reasonable and tied to a protectable interest, many Missouri employers also use a confidentiality or non-disclosure agreement and the Missouri Uniform Trade Secrets Act (RSMo Sections 417.450 to 417.467), along with the no-solicit covenants RSMo Section 431.202 allows. These tools protect trade secrets and customer data without having to satisfy the full common-law reasonableness test that governs a Missouri non-compete.
Frequently Asked Questions
Yes, within limits. Missouri enforces reasonable employee non-competes, but under common law rather than a dedicated statute. Courts in Missouri generally enforce a covenant only to the extent it is reasonable in time and geographic scope and no broader than necessary to protect a legitimate business interest, meaning the employer's trade secrets or customer contacts, not simply protection from ordinary competition. The employer bears the burden of proving the restraint is reasonable. A covenant that only stifles competition, or that is broader than needed, is unlikely to be enforced in Missouri.
There is no statutory maximum. Courts in Missouri have generally treated post-employment restrictions of up to about two years as reasonable, though the answer is fact-specific and depends on the industry, the employee's role, and the interest being protected. The Missouri Supreme Court in Whelan Security Co. v. Kennebrew found a two-year, 50-mile restraint reasonable for the employees at issue. A longer or geographically broader restraint faces greater scrutiny and is more likely to be narrowed or struck in Missouri.
Under Missouri common law a non-compete is enforceable only to the extent it is reasonable and protects a legitimate, protectable interest. Missouri courts recognize two main protectable interests: the employer's trade secrets and its customer contacts, meaning the goodwill and customer relationships an employee developed at the employer's expense. The restraint must be reasonable in duration and geography and no broader than necessary to protect that interest. A covenant designed merely to prevent competition, rather than to protect trade secrets or customer contacts, is not enforceable in Missouri.
No. Missouri has no wage or income threshold that makes a non-compete valid or that exempts lower-paid workers. A reasonable covenant can, in principle, be enforced against an employee at any income level, subject to the common-law reasonableness test. A proposed bill, HCS HB 1202, would have voided non-competes for employees earning $75,000 or less, but it was not enacted and is not Missouri law. Do not rely on that figure or substitute another state's salary threshold when the worker is in Missouri.
Often, yes. Courts in Missouri generally have authority to modify, or blue-pencil, an overbroad covenant and enforce it as narrowed rather than voiding it entirely, so long as the covenant is not wholly unreasonable. In Whelan Security Co. v. Kennebrew the Missouri Supreme Court narrowed an overbroad non-solicitation clause down to the customers the employees had actually dealt with, then enforced the narrowed version. Missouri courts will not, however, build a reasonable agreement from scratch if the original restraint is entirely unreasonable.
Generally yes. Missouri has no advance-notice statute for non-competes, and courts in Missouri generally treat continued at-will employment as sufficient consideration to support a non-compete that an existing employee signs after employment has begun. This means a Missouri employer can usually ask a current employee to sign a non-compete, with continued employment serving as the consideration. Because this is a common-law rule and depends on the facts, it is prudent to document the consideration and, for new hires, to have the covenant signed at the outset.
They pair the non-compete with, or rely on, a confidentiality or non-disclosure agreement and the Missouri Uniform Trade Secrets Act (RSMo Sections 417.450 to 417.467). Missouri employers can also use the no-solicit, no-hire, and confidential-information covenants that RSMo Section 431.202 expressly authorizes, which are conclusively presumed reasonable if they last no more than one year. These tools protect trade secrets and customer relationships without having to satisfy the full common-law reasonableness test that governs a non-compete in Missouri.
No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force, and its status has remained unsettled. Either way, Missouri's own common-law rule independently governs whether a reasonable non-compete is enforceable here, so the federal rule's fate does not change Missouri law today. Missouri employers should follow the state reasonableness standard, not the enjoined federal rule.