Quick Read Summary (TLDR)

As of 2026, Florida non-compete agreements remain enforceable under the established framework of Florida Statute 542.335 following the federal government’s decision to drop a nationwide ban. Although the Federal Trade Commission (FTC) initially attempted to prohibit these restrictive covenants in 2024, the rule was struck down by a federal court and the agency subsequently ceased its appeal in September 2025. This means that Florida employers can still legally restrict former employees, contractors, and sellers, provided the agreements are reasonable in time, area, and line of business.

If your business is experiencing challenges or requires documents reviewed or drafted related to a non-compete agreement, reach out to South Florida law by phone (954) 900-8885 or via our contact form.

Florida non-compete agreements remain alive and well in 2026. After the Federal Trade Commission stepped away from its 2024 effort to ban most non-competes nationwide, enforcement of these agreements has returned firmly to the states. In Florida, that means the longstanding framework under Florida Statute 542.335 continues to govern when and how a business can hold a former employee, contractor, distributor, or seller to a restrictive covenant.

The FTC’s Withdrawal and What It Means for Florida Non-Compete Agreements

In April 2024, the FTC adopted a sweeping rule that would have banned the great majority of employee non-compete agreements across the country. That rule was struck down by a federal court in the Northern District of Texas in August 2024, which held that the FTC lacked substantive rulemaking authority over unfair methods of competition. After an appeal that lingered into a new administration, the FTC voted in September 2025 to drop the appeal and accept the rule’s vacatur. The agency has signaled it may still bring case-by-case enforcement actions against blanket or unreasonably broad agreements under federal antitrust law, but the broad federal ban is officially off the table.

For Florida employers, the practical takeaway is that non-compete enforceability is once again controlled by state law. Florida Statute 542.335 has governed restrictive covenants since 1996, and it continues to apply to agreements signed before July 1, 2025, as well as to many agreements that fall outside the scope of Florida’s newer CHOICE Act framework.

What Florida Statute 542.335 Requires for Enforceability

Florida courts will not enforce a non-compete simply because the parties signed one. The statute imposes specific prerequisites that the party seeking enforcement must plead and prove.

First, the covenant must be in writing and signed by the person against whom enforcement is sought. An oral promise or unsigned draft will not pass muster.

Second, the employer must identify and prove at least one legitimate business interest justifying the restriction. The statute lists several recognized interests, including trade secrets, valuable confidential business information, substantial relationships with specific customers or clients, customer goodwill tied to a trademark or geographic area, and extraordinary or specialized training. Florida courts have repeatedly refused to enforce covenants that amount to nothing more than a desire to suppress ordinary competition.

Third, once a legitimate business interest is established, the restriction itself must be reasonably necessary to protect that interest. The party opposing enforcement then carries the burden of showing that the restraint is overbroad, overlong, or otherwise more sweeping than necessary. If a court finds the restraint excessive, it modifies the agreement, a practice often called blue-penciling, rather than throwing the entire covenant out.

“If a court finds the restraint excessive, it modifies the agreement… rather than throwing the entire covenant out.”

Reasonable Time, Geography, and Scope

The statute creates duration presumptions that guide Florida courts. For former employees, agents, and independent contractors, a restriction of six months or less is presumed reasonable, while anything longer than two years is presumed unreasonable. For former distributors, dealers, and franchisees, one year or less is presumed reasonable, and more than three years is presumed unreasonable.

For covenants tied to the sale of a business, three years or less is presumed reasonable. In trade-secret cases, restrictions up to five years are presumed reasonable. Geographic limits and the scope of restricted activity must likewise be tailored to the actual interest being protected. For example, a sales representative who only worked in Broward and Miami-Dade counties cannot fairly be barred from working anywhere in Florida.

Injunctions and the Presumption of Irreparable Injury

Enforcement typically takes the form of a court injunction. Under the four-part test applied by Florida courts, the moving party must show irreparable harm, no adequate remedy at law, a substantial likelihood of success on the merits, and that the injunction serves the public interest. Florida law gives employers a significant head start by presuming irreparable injury whenever an enforceable restrictive covenant is violated. Courts are also instructed not to weigh individual economic hardship to the restrained party when deciding whether to enforce a valid covenant.

Consult an Experienced Florida Attorney

Drafting, defending, or challenging a non-compete is a fact-intensive exercise. It is highly recommended that businesses and individuals facing these issues consult an experienced Florida attorney rather than attempting to interpret the statute and case law alone.

About South Florida Law PLLC

South Florida Law PLLC is a larger-than-boutique firm offering personalized attention combined with the resources of a larger practice.

With deep experience in Florida business and contract matters we are well positioned to help clients navigate restrictive covenant disputes throughout the state.

If your business is facing a matter related to the enforcement of a Florida non-compete agreement, reach out to South Florida Law by calling (954) 900-8885 or contact us via our website form.