Whether your employer can enforce a non-compete agreement depends on several factors:
State law matters most: Some states like California, North Dakota, and Oklahoma generally prohibit non-compete agreements. Most other states enforce them if they're "reasonable" in scope.
Reasonableness factors: Courts typically evaluate non-competes based on: duration (usually 6 months to 2 years is considered reasonable), geographic scope, the scope of restricted activities, and whether adequate consideration was provided.
Consideration: For new employees, the job itself is usually sufficient consideration. For existing employees being asked to sign a non-compete, many states require additional consideration like a raise, bonus, or promotion.
Can you refuse to sign? Technically yes, but your employer may choose not to hire you or may terminate your employment (in at-will states) if you refuse. However, some states are increasingly restricting when employers can require non-competes.
FTC developments: The Federal Trade Commission has been actively working to limit the use of non-compete agreements nationwide. Check current regulations as this area of law is rapidly evolving.
If you're asked to sign a non-compete, consult an employment attorney to understand your rights and negotiate more favorable terms if possible.