Occupation limits
Delaware Non-Compete Law (2026): Physician ban, court-driven
Delaware voids covenants that stop a physician from practicing in a given place or for a given period, but the same statute lets the parties keep damages clauses tied to the injury from termination, competition included. Everyone else is governed by Chancery's reasonableness review, which is demanding on scope and notably unwilling to rewrite a covenant that reaches too far. The Supreme Court has meanwhile carved out a friendlier path for employers who structure the restriction as a forfeiture of equity or deferred compensation rather than as a bar on working.
The rule
How Delaware treats non-compete agreements
Delaware's two lines of authority pull in different directions, and which one applies depends on the remedy the employer chose. A clause forbidding competition gets exacting scrutiny; a clause forfeiting money for competing is largely enforced on freedom-of-contract grounds. The physician statute is also narrower than it first appears, since preserved damages provisions can reproduce much of a non-compete's deterrent effect.
If you are an employer
Chancery will void rather than narrow an overbroad covenant, so draft conservatively, and consider whether a forfeiture-for-competition term attached to equity gives you a more durable remedy after Ainslie and LKQ.
If you are a worker
A Delaware physician cannot be barred from practicing, though a damages clause may still bite; other workers should press the overbreadth argument, because Delaware courts strike bad covenants instead of trimming them.
| Classification | Common-law reasonableness with a qualified physician prohibition |
|---|---|
| Pay threshold | No pay threshold |
| Maximum term | No statutory ceiling. Chancery treats one year as ordinary and grows skeptical well beyond two. |
| Notice or consideration | No statutory notice or waiting period. |
| Primary statute | Del. Code Ann. tit. 6, § 2707 (physicians); all other workers governed by common law |
Detail
What has changed, and what is still moving
Legislation 2024–2026
None. Section 2707 is longstanding and was not amended in 2024, 2025 or 2026. Movement in Delaware has come from the courts rather than the General Assembly.
Bills to watch
No significant restrictive bills pending
Leading cases
Sunder Energy, LLC v. Jackson (Del. 2024) affirmed Chancery's refusal to blue-pencil an unreasonable covenant, leaving the employer with nothing. Cantor Fitzgerald, L.P. v. Ainslie (Del. 2024) upheld forfeiture-for-competition terms in a limited partnership agreement without reasonableness review, and LKQ Corp. v. Rutledge (Del. 2024) carried that contractarian logic into an employee equity award.
If you have one in hand
What can make a non-compete unenforceable in Delaware
- Your occupation is carved out. Common-law reasonableness with a qualified physician prohibition
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Delaware.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Delaware non-compete questions
Are non-compete agreements enforceable in Delaware?
Delaware voids covenants that stop a physician from practicing in a given place or for a given period, but the same statute lets the parties keep damages clauses tied to the injury from termination, competition included. Everyone else is governed by Chancery's reasonableness review, which is demanding on scope and notably unwilling to rewrite a covenant that reaches too far. The Supreme Court has meanwhile carved out a friendlier path for employers who structure the restriction as a forfeiture of equity or deferred compensation rather than as a bar on working.
How long can a non-compete last in Delaware?
No statutory ceiling. Chancery treats one year as ordinary and grows skeptical well beyond two.
Is there a minimum salary for non-competes in Delaware?
No. Delaware sets no income floor, so pay alone does not decide whether a covenant binds you. The test is whether the restriction goes further than the employer's legitimate interest requires in time, geography and scope of work.
What notice or consideration does Delaware require?
No statutory notice or waiting period.
Sources
How this entry was checked
- Primary source. Del. Code Ann. tit. 6, § 2707 (physicians); all other workers governed by common law — the statutory text itself.
- Secondary sources consulted. Del. Code tit. 6 § 2707, Sunder Energy, LLC v. Jackson (Del. 2024), Cantor Fitzgerald, L.P. v. Ainslie (Del. 2024), LKQ Corp. v. Rutledge (Del. 2024), Ballard Spahr alerts, ABA Business Law Today survey.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.