Quick Answer: Yes. Non-compete agreements remain fully enforceable in Florida in 2026, and the state is now the most employer-friendly jurisdiction in the country. The FTC’s nationwide ban never took effect and was formally removed from federal regulations in February 2026. Florida Statute § 542.335 still governs most agreements, requiring a legitimate business interest and reasonable time, area, and scope. For employees earning more than twice their county’s average wage, the 2025 CHOICE Act allows non-competes and garden leave agreements of up to four years with near-automatic injunctions.
The Federal Picture: FTC Ban Is Dead
The FTC’s Non-Compete Clause Rule, issued in April 2024, would have barred most postemployment noncompete agreements nationwide. It was immediately challenged in federal court, and by August 2024 a district court enjoined enforcement. The agency ultimately gave up the fight. The FTC has withdrawn its appeals in both Ryan LLC v. FTC (5th Cir.) and Properties of the Villages v. FTC (11th Cir.), vacating the Non-Compete Clause Rule. The Villages case, notably, originated in Florida.
The final procedural step came this year. The Federal Trade Commission published a final action in the Federal Register officially removing the Non-Compete Clause Rule (16 CFR Part 910) from the Code of Federal Regulations. This rule is effective February 12, 2026.
That does not mean the FTC has gone silent. Although the blanket ban is dead, the FTC retains authority under Section 5 of the FTC Act to challenge specific non-compete agreements it deems unfair on a case-by-case basis, particularly those involving lower-level employees or agreements that appear exceptionally broad. For example, in late 2025, the FTC finalized a consent order against a large pet cremation company, forcing them to release 1,800 employees from noncompete agreements because the terms were deemed anti-competitive. Florida employers imposing non-competes on hourly or low-wage workers remain the most exposed to this kind of federal action.
| Federal event | Date | Status |
|---|---|---|
| FTC rule issued | Apr 2024 | Never effective |
| Texas court vacates rule | Aug 2024 | Nationwide |
| FTC drops appeals | Sept 2025 | Rule vacated |
| Rule removed from CFR | Feb 12, 2026 | Final |
Florida’s Baseline Rule: § 542.335
For most Florida agreements, the traditional statute still controls. Florida Statute 542.335 governs restrictive covenants and requires employers to prove that a non-compete is necessary and reasonable by showing: (1) a written, signed agreement; (2) a legitimate business interest (such as trade secrets or customer relationships); and (3) reasonable limitations on time, geography, and business scope.
Legitimate business interests
The statute lists the interests that qualify. The employer must show it protects one or more legitimate business interests, such as trade secrets, substantial relationships with specific prospective or existing customers, client goodwill, or extraordinary or specialized training. A covenant that protects none of these is void on its face, regardless of how narrowly it is drawn.
Presumptions on duration
Section 542.335 sets rebuttable presumptions. For a former employee, restrictions of six months or less are presumed reasonable and restrictions over two years are presumed unreasonable. For the seller of a business, the window stretches to three years presumed reasonable and seven years presumed unreasonable. Courts must modify an overbroad covenant rather than strike it, and they may not consider hardship to the employee when deciding enforceability.
The physician exception
One carve-out applies regardless of the CHOICE Act. Section 542.336, Florida Statutes prohibits restrictions between physicians who practice a medical specialty and an entity that employs or contracts with all physicians who practice that same specialty within the same Florida county.
The CHOICE Act: Florida’s Four-Year Non-Compete
The biggest change in decades arrived in mid-2025. On April 24, 2025, the Florida Legislature passed the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act. The law went into effect on July 3, 2025 after the Governor allowed it to become law without his signature.
Who is covered
The CHOICE Act applies to covered employees or independent contractors earning more than twice the annual mean wage in the Florida county where either (i) the covered employer’s principal place of business is located, or where the worker resides if the employer is based outside Florida. Depending on the county, that threshold ranges from approximately $80,000 to $150,000. Healthcare professionals are expressly excluded.
| County (approx.) | 2x mean wage threshold |
|---|---|
| Hillsborough / Orange | ~$125,000–$135,000 |
| Miami-Dade / Palm Beach | ~$140,000–$150,000 |
| Rural counties | ~$80,000–$100,000 |
Thresholds move each year with federal wage data; employers should verify the current figure for the relevant county before relying on the Act.
Two new tools
The Act creates two statutory instruments. The covered garden leave provision allows an employer to retain an employee or contractor during a post-employment “notice period,” during which the employer continues to pay the employee’s salary and benefits while the employee sits out of work, restricting the employee from engaging in competitive employment. Under a covered garden leave provision, the notice period can last up to four years but can be reduced with at least thirty days’ advance notice in writing to the employee.
The second is a covered non-compete. Under the CHOICE Act, non-compete agreements with covered employees or contractors can extend up to four years post-employment. That is double the outer presumption under § 542.335.
Formalities required
The Act’s protections are conditional. For an agreement to be enforceable, employers must provide it in writing at least 7 days before an offer expires and employees must acknowledge receipt of confidential information or customer relationships. The worker must also be advised in writing of the right to consult counsel. Miss a formality and the agreement falls back to ordinary § 542.335 analysis.
Enforcement advantages
This is where the Act matters most in litigation. Courts must preliminarily enjoin a covered worker from violating the agreement, and the injunction may be dissolved or modified only if the worker proves by clear and convincing evidence that no competitive activity will occur or that the employer failed to pay what was promised. Employers may reduce pay or benefits for gross misconduct during the notice or non-compete period. Prevailing parties in enforcement actions are entitled to attorneys’ fees and costs. The CHOICE Act does not affect other employment agreements or existing non-competes not covered by the CHOICE Act.
How the Two Regimes Compare
| Feature | § 542.335 | CHOICE Act |
|---|---|---|
| Who | Any worker | Earners above 2x county mean |
| Max presumed duration | 2 years | 4 years |
| Injunction | Discretionary | Mandatory on showing |
| Burden to dissolve | Preponderance | Clear and convincing |
| Healthcare practitioners | Covered (except § 542.336) | Excluded |
What Florida Employers Should Do Now
- Sort the workforce by county wage threshold. Only above-threshold workers can sign CHOICE Act agreements.
- Re-paper agreements with covered workers using the seven-day review, counsel notice, and written acknowledgment.
- Keep low-wage non-competes narrow or drop them. That is where FTC Section 5 enforcement is concentrated.
- Document the legitimate business interest in the agreement itself, since § 542.335 still requires it.
- Check multistate exposure. A Florida-drafted covenant may be void for a remote employee in California, Minnesota, or Virginia.
What Florida Employees Should Know
A non-compete signed after July 2025 may lock you out for four years if you earn above the county threshold and the formalities were met. Read for the acknowledgment language, the geographic definition, and any clause allowing the employer to shorten the notice period. If you earn below the threshold, the traditional two-year presumption and the reasonableness test still apply, and overbroad restrictions on lower-paid roles remain vulnerable to both Florida courts and federal scrutiny.
This article is general information, not legal advice. Consult a Florida employment attorney about a specific agreement.
Sources and Further Reading
- Federal Register, “Removal of the Non-Compete Rule To Conform These Rules to Federal Court Decisions,” Feb. 12, 2026 – https://www.federalregister.gov/documents/2026/02/12/2026-02866/revision-of-the-negative-option-rule-withdrawal-of-the-cars-rule-removal-of-the-non-compete-rule-to
- Federal Trade Commission, Noncompete Rule page – https://www.ftc.gov/legal-library/browse/rules/noncompete-rule
- American Staffing Association, “Beyond the Ban: The FTC’s New Path on Noncompetes,” Jan. 7, 2026 – https://americanstaffing.net/posts/2026/01/07/beyond-the-ban/
- ACA International, “FTC Officially Removes Noncompete Rule from Federal Regulations,” Feb. 18, 2026 – https://www.acainternational.org/news/ftc-officially-removes-noncompete-rule-from-federal-regulations/
- Shutts & Bowen, “A Year Later, Florida’s CHOICE Act Remains a Game Changer for Employers,” July 2026 – https://www.shutts.com/business-and-legal-insights/floridas-choice-act-remains-a-game-changer-for-employers
- Morrison Foerster, “Florida Doubles Down on Non-Competes as Florida CHOICE Act Becomes Law,” July 2025 – https://www.mofo.com/resources/insights/250714-florida-doubles-down-on-non-competes
- Jackson Lewis, “Florida’s CHOICE Act Offers Employers Unprecedented Tools,” June 2025 – https://www.jacksonlewis.com/insights/floridas-choice-act-offers-employers-unprecedented-tools-non-compete-garden-leave-agreements
- DLA Piper, “Florida CHOICE Act expanding employer non-compete options takes effect” – https://knowledge.dlapiper.com/dlapiperknowledge/globalemploymentlatestdevelopments/2025/florida-CHOICE-act-expanding-employer-non-compete-options-takes-effect
- Ogletree Deakins, “Florida Legislature Passes Restrictive Covenants Bill,” May 2025 – https://ogletree.com/insights-resources/blog-posts/florida-legislature-passes-restrictive-covenants-bill/
- Florida Statutes § 542.335 and § 542.336 – http://www.leg.state.fl.us/statutes/
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