The FTC has Officially Abandoned the Proposal Non-Compete Agreement Ban
On September 5th, 2025, the Federal Trade Commission (FTC) filed an accede to the vacatur of the Non-Compete Clause Rule. It is a procedural move that was expected and it means the previous effort to ban non-competes nationwide has officially been abandoned by the agency.
Background: Trump Administration FTC Drops Biden-Era Proposed Rule
The FTC has formally ended its effort to ban non-compete agreements nationwide. It did so by acceding to the vacatur of its Non-Compete Clause Rule. In other words, the FTC agreed to let the court’s decision striking down the rule stand. Further, the federal agency filed to dismiss its appeals in all pending cases. That confirms that the broad rule adopted by the Biden-era FTC in April of 2024 is no longer in effect and is no longer being pursued.
Notably, that rule was designed to prohibit most post-employment non-competes. It faced sharp and immediate legal challenges and was blocked by a federal court in Texas on the grounds that the agency lacked authority to impose such a sweeping restriction. While the national ban is officially abandoned, the FTC has indicated it will continue to review non-compete agreements on an individual basis under its existing authority. Still, federal review of these agreements is limited.
Some States have Moved to Restrict Non-Compete Agreements, Florida Did the Opposite
There are a number of U.S. states that have started the process of limiting non-compete agreements at the state level. However, Florida has moved in the opposite direction. As of July 1st, 2025, the CHOICE Act (Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth), took effect in the state. Under the law, more robust non-compete and garden-leave agreements are now permissible for certain “covered” employees and independent contractors. The law allows non-competes up to four years in duration. Under the old law, non-competes were generally limited in Florida for four years. Further, the CHOICE Act makes it easier for employers to get an immediate injunction enforcing a non-compete agreement.
The law imposes specific technical requirements that must be met for these agreements to be enforceable under its employer-favorable framework. Most notably, the non-compete must be in writing, it must have a defined geographic scope, and it must provide at least seven days for the employee to review the agreement before signing. What this means for employers and employees in Florida is that non-competes are now more powerful tools for businesses and organizations. With the federal effort to restrict non-competes being abandoned by the FTC, it is Florida’s new law on non-compete agreements that will govern the contracts in our state.
Get Help From a Florida Non-Compete Attorney Today
Non-compete agreements are lawful in Florida. Employers and employees should ensure that any agreement that they signed is drafted and reviewed by an attorney. A Florida non-compete attorney can help you ensure that your rights and your interests are protected.
