Nebraska passed meaningful non-compete reform in 2022 (Neb. Rev. Stat. § 48-2114), effective September 1, 2022. The law introduced an income threshold that protects lower-paid workers: non-compete agreements are void for workers earning less than Nebraska’s median hourly wage, currently approximately $20.00 per hour or about $41,600 annually. For workers above this threshold, the state applies a reasonableness test. Courts can modify (blue-pencil) agreements to enforce them in a reasonable form. Understanding whether you’re above or below the threshold is the first step in assessing enforceability.
If you work in Nebraska, the threshold question is critical. If your income is below the median wage, your non-compete is automatically void regardless of other terms. For higher-earning workers, reasonableness applies. This guide walks you through the income threshold, what makes a non-compete reasonable, and what to do if you’re facing enforceability.
Key Facts
| Factor | Details |
|---|---|
| Enforceability | Void if worker earns below median wage; reasonable test if above |
| Maximum Duration | 2 years typical (for eligible workers) |
| Income Threshold | ~$20.00/hr or ~$41,600/year (2024; adjusted periodically) |
| Blue-Pencil Reform | Courts can modify agreements for eligible workers |
| Garden Leave | Not required by statute |
What Makes a Non-Compete Enforceable in Nebraska
First and most importantly: if you earn less than Nebraska’s median hourly wage (approximately $20.00/hour or $41,600/year as of 2024), your non-compete is automatically void. The income threshold is adjusted periodically, so verify the current threshold with an attorney if you’re near the boundary.
For workers above the threshold, a non-compete must be reasonable in: (1) duration, (2) geographic scope, and (3) type of work restricted. The employer must have a legitimate business interest: trade secrets, customer relationships, confidential information, or specialized training. Courts apply a reasonableness standard and can use blue-pencil reform to modify overly broad agreements.
Duration of 2 years or less is typically reasonable for high-earning workers. Geographic scope must align with where the employer actually operates. The restricted work should be specifically defined rather than overbroad. Reasonableness is evaluated based on the employer’s actual business interests and the employee’s specific position.
Income Thresholds and Worker Exemptions
Nebraska’s income threshold is the defining feature of the law. If you earn less than the median wage (approximately $20.00/hr or $41,600/yr as of 2024), you cannot be bound by a non-compete. Even if you signed an agreement, even if you were specifically asked to sign it, if your income is below the threshold, the non-compete is void.
The threshold is based on median hourly wage for Nebraska. It’s adjusted periodically, so if you’re near the boundary, verify the current figure. The threshold applies to all workers—hourly and salaried—and is calculated on total annual compensation.
For workers above the threshold, the reasonableness test applies. Higher-earning workers, especially those in professional positions with trade secret access, are more likely to face enforceable restrictions. However, even for higher-paid workers, the non-compete must still be reasonable in all respects.
What Happens If You Violate One
If your income is below the threshold, you can violate a non-compete without legal risk. The agreement is void, and your employer cannot sue. If you’re above the threshold and violate an enforceable non-compete, your employer can seek injunctive relief and damages.
However, Nebraska’s blue-pencil doctrine gives you some protection. If your non-compete is partially unreasonable, courts may modify it to a reasonable form and enforce the modified version. This is better than some states where unenforceable agreements are struck down entirely—you get the benefit of court modification.
Before taking competing employment, consult a Nebraska employment attorney. An attorney can determine your income threshold status and assess enforceability risk.
Real Situations in Nebraska
A customer service representative in Omaha earning $35,000 per year was required to sign a non-compete restricting her from working for competing call centers for 1 year. Because her income ($35,000) is below Nebraska’s median wage threshold (approximately $41,600), the non-compete is void. She can accept a competing position without legal risk. Her former employer has no recourse because the agreement is automatically unenforceable under Neb. Rev. Stat. § 48-2114.
In another case, a software engineer in Lincoln earning $95,000 per year signed a non-compete restricting him from competing for 3 years statewide. Because his income is above the threshold, enforceability is assessed under the reasonableness test. The 3-year duration is unreasonable for the industry. The court used blue-pencil reform to reduce the duration to 2 years, making the modified agreement enforceable for that shorter period.
A pharmaceutical sales manager in Kearney earning $65,000 per year was subject to a non-compete restricting competing pharmaceutical sales within a 50-mile radius for 18 months. Above the income threshold, the agreement is analyzed for reasonableness. The manager’s position gave her direct access to customer relationships and proprietary sales strategies. The court found the restriction reasonable: the duration was within typical bounds, the geography reflected her work area, and the employer had legitimate interests. The non-compete was enforceable.
Common Mistakes Nebraska Employees Make
Mistake 1: Not calculating annual income to determine threshold status. Many below-threshold employees comply with void non-competes. Calculate your total annual compensation (including bonuses, benefits, etc.). If it’s below approximately $41,600 (2024 threshold), the non-compete is void—you don’t have to comply.
Mistake 2: Assuming income threshold applies only to salary. The threshold is based on total annual compensation, not just base salary. Bonuses, commissions, and other compensation count toward your annual total. Calculate your full compensation.
Mistake 3: Not negotiating duration or geography for above-threshold workers. If you’re above the threshold, you have leverage to negotiate. Propose shorter duration, smaller geography, or narrower scope. Many Nebraska employers will modify reasonable requests rather than risk enforceability challenges.
What to Do If You Have a Non-Compete
Step 1: Calculate your annual compensation to determine threshold status. Add base salary, bonuses, commissions, and other compensation. Verify the current Nebraska median wage threshold with an attorney. If you’re below, the non-compete is void and unenforceable.
Step 2: If below threshold, document your income. Keep copies of pay stubs, compensation statements, and tax returns showing your annual earnings. If your employer threatens enforcement, this documentation proves the non-compete is void.
Step 3: If above threshold, assess the reasonableness factors. Review the non-compete for duration, geography, and restricted work scope. Are they reasonable for your industry and position? If any factor seems excessive, you have a defensibility argument.
Step 4: Consult a Nebraska employment attorney. Have a lawyer confirm your threshold status and assess enforceability. An attorney can advise whether to proceed with competing employment or negotiate a release.
Step 5: Report threshold violations to Nebraska Department of Labor. If your employer is enforcing void non-competes against below-threshold workers, report the violation to https://www.dol.nebraska.gov.
Related Guides
- Employment Rights Guide for Nebraska Workers
- Nebraska Wage Theft Laws: What You Need to Know
- Small Claims Court Guide: Handling Your Own Employment Disputes
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Income thresholds and non-compete enforceability in Nebraska require analysis of current figures and specific facts. For advice on your situation, consult a licensed employment attorney in Nebraska. The information reflects the law as of March 2026.