Understanding Non-Compete Agreements: What You Need to Know

Author: Lindsay A. Compton

Date: December 31, 2025

In the modern workforce, many employers ask employees to sign non-compete agreements. These agreements can have serious implications for an individual’s career and for a business’s competitive strategy. Before signing, drafting, or enforcing a non-compete, it’s important to understand what they are, how they are treated under current law, and what to consider in your situation.

What Is a Non-Compete Agreement?
A non-compete agreement (also called a covenant not to compete) is a restrictive covenant. A restrictive covenant is an agreement that one party agrees to restrict himself from otherwise lawful activity.  A non-compete agreement restricts one party, typically an employee or contractor, from “entering into competition” against the other party of the contract by working for a competing employer or owning and operating a competing business, after the employment relationship ends. These agreements are intended to protect legitimate business interests such as trade secrets, customer relationships, and proprietary information by restricting where and how a former employee can work after leaving a job.

The FTC’s Attempted Federal Ban and Its Outcome
In April 2024, the Federal Trade Commission (FTC) issued a final rule that would have broadly banned non-compete agreements nationwide, asserting that they were an unfair method of competition under Section 5 of the FTC Act. The rule would have prohibited employers from entering into or enforcing most non-compete clauses with employees or contractors.

However, that federal non-compete ban never took effect and has been officially abandoned. A federal district court ruled that the FTC lacked authority to implement such a sweeping prohibition, and the FTC later dismissed its appeals, leaving the rule unenforceable. As a result, there is currently no federal ban on non-compete agreements in the United States, and employers can continue to use them subject to state law.

Non-Competes in Florida
In Florida, non-compete agreements are generally legal and enforceable so long as they meet statutory requirements designed to ensure reasonableness and protect legitimate business interests without being overly broad. However, Florida’s approach to non-competes is more employer-friendly than most states.

Florida law allows courts to enforce restraints on competition if they are:

• Reasonable in time;

• Reasonable in geographic area;

• Reasonable in the scope of prohibited activities; and

• Protects a legitimate business interest.

 Under the statutory framework, courts often presume a restraint is reasonable in time if it is six months or less, and unreasonable if over two years—though these presumptions can be rebutted because facts of a specific case can shift that analysis.

Effective July 1, 2025, Florida enacted the CHOICE Act (Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth), which creates a special presumption that certain “covered” non-compete and garden-leave agreements are enforceable if they satisfy specific statutory conditions, including a written agreement, a defined geographic scope, and a minimum review period for the employee. For these agreements, courts are directed to grant preliminary injunctions against violations, unless the employee can clear a high evidentiary standard showing no harm would occur.

An important exception to note: attorneys cannot be subject to non-compete agreements in Florida. Rules governing the practice of law prohibit agreements that unreasonably restrict a lawyer’s ability to practice after leaving a firm or employer. This exception is specific to attorneys and arises from professional ethics requirements.

What to Consider Before Drafting or Signing a Non-Compete
Whether you are an employer drafting a non-compete or an employee asked to sign one, consider the following practical and legal factors:

1. Legitimate Business Interest
Non-competes are more likely to be enforced when tied to protectable interests such as trade secrets, confidential information, or substantial relationships with specific clients.

2. Reasonableness of Terms
Courts evaluate reasonableness in terms of duration, geographic area, and scope. Overly broad restrictions that go beyond what is necessary to protect legitimate interests may be struck down. The court may also “blue pencil”, or modify, a non-compete agreement to make it more reasonable and enforceable.

3. Statutory Presumptions and Limitations
Some jurisdictions, including Florida, impose statutory frameworks that create presumptions about enforceability for certain covered employees and require procedural protections, such as giving employees sufficient time to review and seek counsel.

4. Alternatives and Additional Complementary Protections
Non-disclosure agreements (NDAs), non-solicitation clauses, and confidentiality agreements can sometimes protect business interests with less risk of being unenforceable. These tools may be preferable in certain contexts.

5. Risks of Enforcement or Challenge
Even a valid non-compete may be challenged in court on the grounds that it is unenforceable due to overbreadth, lack of consideration, or public policy issues. Conversely, enforcing a non-compete can lead to costly litigation if the other party contests it.

6. Consult an Attorney Before Signing
Non-competes can have a long-lasting impact on your livelihood. With so much at stake, it’s wise to consult with experienced counsel who can review the language, explain your rights, and advise you of potential risks and alternatives.


Want Help with Your Non-Compete?

Non-compete agreements are powerful legal tools—but they are also complex. Whether you are an employer needing a drafted or reviewed non-compete, or an individual who has signed one and wants guidance, Compton Law, P.A. can help.

We provide:

• Drafting and review of non-compete agreements tailored to your business needs and compliant with applicable law;

• Representation in litigation to challenge or defend the enforceability of a non-compete; and

• Strategic advice on alternatives such as NDAs or non-solicitation agreements.

Reach out to Compton Law, P.A. to protect your interests, clarify your rights, and get practical guidance in your specific situation.