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Can a home care agency make caregivers sign a non-compete in Tennessee?
Last verified October 17, 2026 · All Tennessee resources
Banned below wage threshold. From 2026-07-01, Tennessee bans non-competes for employees earning less than $70,000 a year, calculated for hourly workers as the hourly rate times 2,080 hours. That covers typical hourly caregivers for agreements signed, renewed or amended after that date. Client non-solicitation agreements can still be enforced, and for higher earners a two-year restriction is presumed reasonable.
| Status | Banned below wage threshold |
|---|---|
| Wage threshold | For agreements entered into, renewed or amended on or after 2026-07-01, employers may not require, request or enforce a non-compete with an employee whose annualized compensation is less than $70,000. For hourly employees, annualized compensation is the hourly rate times 40 times 52 (about $33.65 an hour). |
| Healthcare-specific rule | Tennessee separately restricts non-competes for certain physicians and other licensed health professionals, and (since 2023) for direct care staff placed by temporary healthcare staffing agencies. |
| Client non-solicitation | The 2026 law expressly does not prevent enforcement of client or customer non-solicitation agreements, employee non-solicitation agreements, or confidentiality agreements. |
| Statute | Tenn. Code Ann. § 50-1-211 (Pub. Ch. 934, 2026) |
| Latest change | 2026-07-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
What should you confirm?
Agreements signed before 2026-07-01 and not later renewed or amended are not covered by the new threshold. Healthcare profession and staffing agency rules come from a law firm survey.
General information, not legal advice.
More for Tennessee
Non-compete rules by state: other states
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