Latest / Job Hopping with Fexingo: Tenure, Loyalty, and the Modern Career Resume / How Job Hoppers Navigate Non-Compete Agreements
Transcript
- Lucas: So it's mid-2026, and if you've changed jobs more than twice in the last five years — which is pretty much our audience — you've probably signed at least one non-compete agreement. Maybe two or three. Luna: And if you're like me, you might have skimmed it and thought, 'I'll deal with this later.' Then later arrives when you're eyeing a competitor. Lucas: Exactly. Today we're talking about how job hoppers specifically can navigate non-competes. Because the rules have shifted dramatically. Remember the FTC's big move in April 2024? Luna: Right, they tried to ban most non-competes nationwide. That was a huge story. Lucas: It was. The FTC issued a rule that would have voided existing non-competes for the vast majority of workers — only senior executives making over $151,000 annually would have been exempt. But then the legal challenges hit. Luna: And it got blocked, right? By a federal judge in Texas. Lucas: Judge Ada Brown in the Northern District of Texas. She ruled the FTC lacked authority to issue that rule. So by late 2024, the nationwide ban was dead. But here's the thing — the conversation didn't end. A bunch of states stepped in. Luna: So we're in this patchwork situation now. California's always been the gold standard — basically unenforceable except for sale of business. What about other states? Lucas: California, North Dakota, Oklahoma — they've long banned them. Minnesota banned them in 2023. More recently, New York passed a law in late 2025 that bans non-competes for workers earning under $250,000 a year, with some exceptions for executives and sale of business. Luna: So if you're a job hopper in New York making under a quarter million, you're basically free to move. That's a big shift. Lucas: Huge. But if you're in Texas or Florida, courts still enforce non-competes as long as they're reasonable in scope and duration. So your location matters a lot. But even within a state, there's nuance. Luna: Let's talk about what job hoppers can actually do. Because a lot of us sign these things without realizing we have leverage. Lucas: First piece of leverage: negotiate it before you accept the offer. Most people treat the non-compete as a take it or leave it. But if you're a valued candidate — especially if you're coming in with a track record of delivering results — you can ask for modifications. Luna: Like what kind of modifications? Lucas: Shorten the duration. Standard is 12 to 24 months. Ask for 6 months. Narrow the geographic scope — instead of 'within 50 miles of any office,' make it 'within 10 miles of the office you actually work at.' And narrow the role restrictions. Instead of 'any competitor,' define specific companies or specific product lines. Luna: And get it in writing. Verbal promises don't hold up in court. Lucas: Absolutely. Second piece of leverage: garden leave. That's where the employer pays you during the non-compete period. It's common in finance and media, but less so in tech and marketing. If you're in a role where you have real client relationships or trade secrets, you can propose garden leave as a compromise. Luna: Because if they're not willing to pay you to sit out, maybe they don't really need the restriction. Lucas: Exactly. There was a great case study from 2025 — a marketing manager at a SaaS company in Chicago. She had a 12-month non-compete, but she documented that she never received any specialized training or access to proprietary data. When she left for a direct competitor, the company threatened to sue. Her lawyer sent a letter citing lack of consideration — basically, she didn't get anything extra for signing it beyond her at-will employment. Luna: And that's key in many states. If you signed the non-compete after you already started the job, without any new benefit — no bonus, no raise, no equity — it can be unenforceable. Lucas: Right. In Illinois, where that case happened, continued employment alone can be enough consideration, but it's not automatic. The judge sided with her because the company couldn't show a legitimate business interest. So she was free to start her new role immediately. Luna: That's the kind of outcome job hoppers need to understand. It's not just about signing — it's about what you sign and when. Lucas: Let me give you a practical framework. If you're a serial job hopper — say you've had four jobs in eight years — you need to build a non-compete file. Every time you sign one, save a copy. Note the date you signed it, whether you received any additional compensation, and what your actual role involved. Luna: Almost like a career audit trail. I love that. Lucas: Then when you're ready to leave, you can assess your risk. If you're moving to a different industry entirely — say from B2B SaaS to consumer fintech — the non-compete probably doesn't apply. Most are written to cover 'similar products or services.' So if your new role targets a different customer or solves a different problem, you're likely fine. Luna: But what if you're moving to a direct competitor? Same product, same market. Lucas: That's the highest risk scenario. Then you need to look at the specific terms. Does your non-compete define 'competitor' as a list of named companies, or as any company in a broad category? If it's a list, check if your new employer is on it. If it's broad, you need legal advice. Luna: And legal advice isn't cheap. But there are resources. Some states have free employment clinics. And many lawyers offer a 30-minute consult for under $200. Lucas: Which is a fraction of what you'd pay if you got sued. Let's talk about what happens if you do get sued. Most non-compete lawsuits don't go to trial — they seek a temporary restraining order or a preliminary injunction. That means within weeks of leaving, you could be barred from starting your new job. Luna: So prevention is better than defense. How do job hoppers structure their moves to avoid triggering a lawsuit? Lucas: One tactic: build a transition period. Negotiate a later start date with your new employer — say 30 to 60 days out. Use that time to go on garden leave or just take time off. Courts are less likely to issue an injunction if there's a gap — it shows you're not immediately competing. Luna: Also, don't take any confidential information with you. That's obvious, but people do it. Forwarding emails, downloading files — that's a huge red flag. Lucas: Right. And don't solicit clients or coworkers before you leave. That can violate both the non-compete and your duty of loyalty. Even if the non-compete isn't enforceable, a breach of loyalty claim can stick. Luna: So the key takeaway: non-competes are not absolute. They're contracts, and contracts can be negotiated, challenged, and sometimes voided. Lucas: And the landscape is shifting fast. More states are passing reform. The FTC might try again with a narrower rule. And courts are increasingly skeptical of blanket restrictions on low- and mid-level workers. Luna: I'm curious — do you think non-competes actually help companies retain talent? Or do they just make people more anxious about leaving? Lucas: I think they're a retention crutch. If you have to threaten your employees to stay, you're not building a culture that keeps them. The best companies don't rely on non-competes — they rely on good management, competitive pay, and interesting work. Luna: And for job hoppers, that's actually an advantage. You're more likely to end up at companies that don't overuse these agreements, because you've seen the difference. Lucas: Exactly. And this is where I want to mention something a handful of listeners already help us with. This show is completely ad-free — no sponsors, no commercials. And the reason is that about 1% of our listeners chip in a few dollars each month on buy me a coffee dot com slash fexingo. Luna: Yeah, and that small group literally funds the production of episodes like this one. It keeps us independent and focused on what matters for your career. Lucas: So if you've gotten value from today's episode — maybe you're about to negotiate a non-compete or you're planning your next move — consider joining that group. It really does make a difference. Luna: Alright, back to the topic. One more thing I want to touch on: what about non-solicit agreements? Those are often bundled with non-competes. Lucas: Good point. Non-solicits restrict you from poaching clients or employees. They're generally more enforceable because they protect specific business relationships. But again, they have to be reasonable. A two-year non-solicit covering every client you ever worked with might be struck down as overbroad. Luna: So if you're job hopping and you have a non-solicit, you can still go to a competitor — you just can't take your rolodex with you. Lucas: Exactly. And honestly, most employers don't sue over non-solicits unless you cause significant damage. They're expensive to litigate. So the practical risk is lower. Luna: Let's wrap with a quick checklist. First, review your current non-compete before you even start looking. Second, negotiate any new non-compete before accepting an offer. Third, if you're in a high-risk move, get a lawyer consult. Fourth, document everything. Lucas: And remember, the non-compete is just one factor in your career decision. Don't let fear of a lawsuit keep you from a better opportunity. Most threats are just that — threats. With the right preparation, you can move with confidence.