Key Takeaways
- Read your employment agreement carefully for non-competes
- Non-competes may be negotiable or unenforceable
- FINRA licenses have a 2-year maintenance window
Last updated: December 2025
Finance & Banking Playbook
"I have a non-compete—am I stuck?" — Maybe not. Let's look at your options.
Finance-Specific Considerations
| Issue | What to Know |
|---|---|
| Non-compete agreements | Often enforceable (unlike tech) |
| Garden leave | May be paid to stay home |
| Bonus clawback | Read your agreement |
| FINRA registrations | 2-year maintenance window |
| Deferred compensation | May be forfeited |
Non-Compete Reality (2025 Update)
States Where Non-Competes Are BANNED:
- California
- Minnesota
- North Dakota
- Oklahoma
- Montana
- Wyoming
FTC Federal Ban Status: DEAD as of September 2025. Federal court struck it down—enforceability now depends entirely on state law.
| Factor | Impact |
|---|---|
| State law | Some states don't enforce (see above) |
| Geographic scope | May be limited to specific region |
| Time limit | Usually 6-24 months |
| Role restrictions | May only cover direct competitors |
| Your leverage | Senior = more scrutiny, more negotiation |
Always read the actual language. Non-competes are often narrower than people assume.
Negotiating Non-Competes
In severance negotiation, you may be able to:
- Reduce scope (fewer competitors)
- Shorten duration (12 months → 6 months)
- Narrow geography
- Get explicit carve-outs for specific employers
The company may not care about enforcement—it's worth asking.
FINRA Licensing
If you hold Series licenses (7, 63, 66, etc.):
| Situation | What Happens |
|---|---|
| Employed | License active |
| Terminated | License goes into U5 status |
| 2-year window | Can reactivate without retaking exams |
| After 2 years | Must re-take exams |
Action items:
- Request copy of your U5 form
- Check for any negative disclosures
- Track your 2-year window
- If starting new role, transfer license promptly
Bonus and Deferred Comp
| Type | Likely Outcome |
|---|---|
| Already paid bonus | Yours to keep (usually) |
| Earned but not yet paid | Check agreement—may be owed |
| Deferred compensation | Often forfeited if unvested |
| Sign-on bonus | May have clawback provision |
Job Search in Finance
| Reality | Implication |
|---|---|
| Relationship-driven | Your network is everything |
| Longer timelines | 4-6 month average |
| Fewer positions | More competition |
| Compliance roles | Often hiring |
| Consulting/advisory | Good bridge option |
Test Your Knowledge
How long do you have to reactivate FINRA registrations (like Series 7) without retaking the exams?
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