The Federal Trade Commission (FTC) has proposed a new rule that would ban employers from imposing noncompete agreements on their workers in an effort to increase wages and expand career opportunities for Americans. The proposed rule is based on the FTC’s preliminary finding that noncompete agreements constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act. If enacted, the proposed rule will supersede all state laws, regulations, orders, and interpretations of any laws inconsistent with the proposed rule’s requirements. Florida noncompete law is inconsistent with the proposed rule because Florida has historically favored noncompete agreements and deems them to be valid trade restraints. As a result, Florida employers will be greatly impacted if the proposed rule becomes final.

Florida is a pro-employer public policy state and has one of the most pro-employer noncompete statutes in the United States. As a condition of employment, Florida employers can require that their employees sign noncompete agreements under which the employee promises not to compete with the employer’s business during and after the employment relationship. A noncompete agreement is generally enforceable in Florida if it is reasonable with regard to time, geographical area, and line of business, and protects a legitimate business interest of the employer, such as valuable confidential information, goodwill, trade secrets, substantial relationships with customers, patients, and clients, and extraordinary or specialized training.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]