One Year Later, FTC Non-Compete Ban May Be Pulled
In April of 2024, the Federal Trade Commission (FTC) announced a proposed rule that would prohibit most non-compete agreements nationwide. Soon after, several different lawsuits were filed to stop the federal regulation from taking effect. By August of 2024, a federal judge in Texas put a long-term injunction in place. Now, nearly one year after the initial announcement, the Trump Administration is strongly considering abandoning the regulation altogether.
Background: FTC Proposed Ban on Non-Compete Agreements
The FTC moved to prohibit most for-profit private industry employers from using most types of non-compete agreements in the spring of 2024. The rule—which was originally scheduled to take effect in September of 2024—sought to prohibit employers from entering into non-compete clauses with workers, including senior executives, after the effective date. However, the rule faced immediate legal challenges. On August 20th, 2024, a federal court in Texas issued an injunction blocking the FTC’s enforcement of the regulation. The federal judge determined that the agency lacked the statutory authority to promulgate such a comprehensive non-compete ban.
Trump Administration Expected to Drop Non-Compete Regulation
The litigation on the FTC’s proposed non-compete ban is still progressing. With that being said, the FTC itself may end up abandoning the regulation outright before a final decision is made by the court. The Trump Administration has not expressed support for the regulation. On March 7th, 2025, the agency—which by that time was under new leadership—filed motions to stay its appeals of the district court decisions that had blocked the non-compete ban. As part of that filing, it cited a change in administration as a reason for reconsideration. There are now additional reports that the Trump Administration is preparing to abandon the national non-compete prohibition.
Non-Compete Agreements are Lawful in Florida, Likely to Remain that Way for Near Future
What does this mean for employers and employees in Florida? As of the spring of 2025, non-compete agreements remain lawful and enforceable. Though, they are still required to comply with Florida state law on non-competes. To be valid, these agreements must be:
- Reasonable in time;
- Reasonable geographic area; and
- Reasonable in scope.
Notably, Florida courts have consistently upheld non-competes that protect legitimate business interests—such as trade secrets and customer relationships—as legitimate. Both employers and employees should have non-competes drafted and reviewed by an attorney.
The Bottom Line: Given the current legal landscape and the Trump administration’s stance, it is likely that non-compete agreements will continue to be a valid and enforceable tool for employers in Florida for the foreseeable future. Still, the issue should be watched carefully for any relevant legal or legislative developments at either the state or federal level.
Speak to a Non-Compete Agreement Attorney in Florida
Non-compete agreements remain permissible in Florida—as long as they meet the requirements set forth by state law. If you are an employer or an employee with any questions or concerns about non-competes, please do not hesitate to contact a Florida employment lawyer for help.
