The U.S. Federal Trade Commission (FTC) has abandoned its efforts to enforce the federal noncompete ban it adopted during the Biden administration. Enforcement of the noncompete ban had been on hold since a federal district court found that the ban exceeded the scope of the FTC’s authority in 2024, and the FTC had been challenging the district court’s decision on appeal. However, on September 5, 2025, the FTC announced that it was taking steps, “to dismiss its appeals . . . and to accede to the vacatur of the Non-Compete Clause Rule.”
Importantly, however, while the FTC may no longer be seeking to enforce its noncompete ban—and while Florida’s recently enacted CHOICE Act is considered to be among the most employer-friendly noncompete laws in the country—restrictions still apply. As a result, employers in Florida still need to ensure that they are making informed decisions about the scope of their noncomplete clauses and their efforts to enforce their noncompetes in court.
Noncompete Enforcement Under Florida’s CHOICE Act
Enacted on July 1, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act expands the enforceability of covered noncompete clauses. It does so by both: (i) extending the maximum duration of covered noncompetes from two years to four years; and, (ii) shifting the burden to employees to affirmatively demonstrate that a covered noncompete is unenforceable, provided that the noncompete in question meets certain baseline requirements. These requirements are:
- The noncompete is in writing and defines a covered geographic area;
- It is reasonably likely that the employee would provide similar services or rely on the employer’s confidential information after leaving his or her employment;
- The employer provides the agreement at least seven days before an employment offer expires (or an offer to enter into the agreement expires for current employees);
- The employee is advised in writing of the right to seek counsel and acknowledges the receipt of confidential information in writing; and,
- The noncompete period is reduced day-for-day for any “garden leave” period.
Other restrictions apply under the CHOICE Act as well—including compensation restrictions and a specific exclusion for licensed healthcare practitioners. Noncompetes that fall outside of the CHOICE Act will continue to be governed by existing state law.
The FTC Is Still Scrutinizing Employer-Employee Noncompetes
Additionally, while the FTC has abandoned its noncompete ban, it has also made clear that it will continue to enforce preexisting restrictions on noncompetes as warranted. Five days after announcing its decision to abandon the ban, the FDA issued another announcement touting its efforts to protect employees from unduly burdensome noncompetes. Thus, despite the recent developments at the state and federal levels, it is clear that employers in Florida must continue making informed decisions related to their noncompetes going forward.
Please Reach Out to Us for More Information
If you have questions about using noncompetes to protect your business in Florida, we invite you to get in touch. Call 954-361-3633 or tell us how we can reach you online to schedule an appointment at Shaw Lewenz today.