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FTC Proposes Ban on Non-Compete Agreements: What it Means and What Comes Next

In January of 2023, the Federal Trade Commission (FTC) proposed a new rule that would dramatically restrict the use of non-compete agreements. A non-compete is a restrictive covenant whereby one party agrees to avoid direct competition against the other for a predetermined period of time. Here, our Florida contract law attorney explains the key things to know about what it means and what comes next. 

Non-Compete Agreements are Currently Permissible in Florida 

Under current law (March 2023), non-compete agreements are legally allowed in the state of Florida. However, these contracts must meet certain criteria to be enforceable. A non-compete for an employee or independent contractor should be reasonably narrow in scope and duration. 

FTC Rule Would Bar Most Non-Compete Agreements

If it becomes finalized in its current form, the FTC’s proposed federal regulation would prohibit most non-compete agreements on the grounds that they can harm workers’ job mobility and limit competition in the labor market. The federal regulations would supersede Florida law. 

The Comment Period Closes March 20th, 2023

Pursuant to federal regulations, the FTC is accepting comments on its proposed rule until March 20th, 2023. At that time, the agency may move to finalize the regulation. Some business interest groups have expressed concern over the regulation. Litigation is expected. Our firm will keep a close watch on the proposed federal ban of non-compete agreements. 

Contact Our Clearwater, FL Contract Law Attorney Today
At Clearwater Business Law, we are committed to reliable, solutions-driven legal representation. If you have any questions or concerns about non-compete agreements, our attorney is more than ready to help. Call us at (727) 785-5100 or contact us online for a fully confidential consultation.