Florida’s non-compete regime is one of the most employer-friendly in the country — but the federal landscape has shifted. Here’s what Florida employers and employees should know in 2026.
Florida’s baseline: § 542.335
Florida Statute § 542.335 makes Florida one of the most favorable jurisdictions in the country for enforcing reasonable restrictive covenants. The statute presumes restrictions of six months or less are reasonable in time, six months to two years are presumed unreasonable without justification, and more than two years are presumed unreasonable except in sale-of-business contexts. The employer bears the burden of proving a legitimate business interest — which the statute enumerates non-exclusively: trade secrets, customer relationships, goodwill, extraordinary investment in employee training.
For a well-drafted non-compete tied to a legitimate business interest, Florida courts have historically enforced — and will continue to enforce — the restriction through temporary and permanent injunctive relief. This is the status quo the 2024–2026 FTC rulemaking has destabilized, but not displaced.
What the FTC rule attempted to do
In April 2024, the FTC finalized a rule that would have banned most new employer-employee non-compete agreements nationwide, with an exemption for existing senior executives and for non-competes associated with the sale of a business. The rule was almost immediately challenged; a federal court in Texas vacated it nationwide in August 2024. The Fifth Circuit affirmed in 2025. As of April 2026, the FTC rule is not in force.
However, the FTC is still pursuing case-by-case enforcement actions under Section 5 of the FTC Act against specific employers’ non-compete practices, and the Administration has signaled it will continue that enforcement track even without the rule. The practical takeaway: Florida law governs, but employers should not assume immunity from federal oversight when non-competes are unusually broad or applied to lower-wage workers.
What changed in Florida state law
Florida passed a narrow 2025 amendment to § 542.335 clarifying that non-competes are not enforceable against employees earning less than the state median wage (approximately $55,000 in 2026, indexed annually). The amendment also codified a ‘functional test’ for healthcare workers, requiring particular scrutiny of physician non-competes in underserved areas. Outside these narrow categories, the statute remains effectively unchanged.
Drafting enforceable Florida non-competes in 2026
1. Tie the restriction to a specific legitimate business interest
Recite the legitimate business interest — customer relationships, trade secret access, specialized training — and describe the employee’s role in producing or accessing it. Generic recitals invite challenge.
2. Match duration to role
Six months or one year is strongly preferred. Two-year restrictions require clear justification: executive roles, acute customer-relationship management, or sale-of-business contexts. Five-year restrictions are enforceable only in unusual sale contexts under the statute.
3. Define geographic scope narrowly
‘Anywhere in Florida’ for a role that touches only North Florida is asking for a judicial blue-pencil. Use county-level descriptions or customer-based definitions (e.g., ‘any customer the employee served in the 12 months preceding termination’) where possible.
4. Provide consideration
Employment itself is adequate consideration for a non-compete signed at hire. Non-competes imposed mid-employment require additional consideration — a raise, a bonus, equity, or a promotion. A tenured Florida employee who is asked to sign a new non-compete for their existing job, with nothing new offered, has a strong defense.
5. Integrate with NDA and non-solicitation
A belt-and-suspenders approach protects more than a non-compete alone. Non-solicitation and non-disclosure clauses often survive where a naked non-compete would not, and Florida courts are generally comfortable enforcing them.
Sale-of-business non-competes
Non-competes signed in connection with the sale of a business are treated more favorably under § 542.335 than employment non-competes — sometimes for up to five years in goodwill-driven transactions. The key is tying the restriction to the protected goodwill transferred, not merely to the seller’s continued relationship with the buyer. In M&A, we draft these carefully to withstand post-closing challenge.
Employee playbook
If you’re a Florida employee considering a job change, read your non-compete before talking to recruiters. Key questions: what duration, what geography, what ‘competing business’ definition, what carve-outs. The most enforceable non-competes name specific customers, specific competitors, or specific services. The least enforceable are broad generic prohibitions.
If you’re considering a move that arguably triggers your non-compete, consult counsel before the move — not after you’ve been served with an injunction. A pre-move risk assessment is inexpensive; an emergency injunction hearing is not.
Frequently asked questions
Frequently asked questions
Are non-competes still enforceable in Florida in 2026?
Yes. Florida § 542.335 remains the governing statute, and Florida courts continue to enforce reasonable non-competes. The FTC’s 2024 federal ban was vacated and is not in force, though FTC case-by-case enforcement under Section 5 of the FTC Act continues.
What duration is presumed reasonable in Florida?
Up to six months is presumed reasonable. Six months to two years is presumed unreasonable unless the employer proves a legitimate business interest and narrow tailoring. Over two years is presumed unreasonable outside sale-of-business contexts.
Does Florida require additional consideration for a mid-employment non-compete?
Yes. Hiring is sufficient consideration for a non-compete signed at the start of employment, but a non-compete imposed mid-employment generally requires additional consideration beyond continued employment — a raise, bonus, equity, or promotion.
Can Florida courts ‘blue pencil’ overbroad non-competes?
Yes. § 542.335 directs courts to modify overbroad non-competes to make them reasonable rather than invalidate them outright. This is different from many other states, which refuse to rewrite unreasonable restrictions.
What’s the 2025 Florida wage threshold I’ve heard about?
Florida amended § 542.335 in 2025 to prohibit non-compete enforcement against employees earning below the state median wage, approximately $55,000 in 2026 and indexed annually thereafter. Healthcare workers in designated underserved areas also get enhanced protection.
What about non-solicitation and NDA clauses?
Florida courts enforce both robustly when tied to legitimate business interests. Many employers find that a strong non-solicitation and NDA package delivers most of the practical protection without the enforcement risk of a broad non-compete.
If I sell my business, can I sign a longer non-compete?
Yes. Sale-of-business non-competes are treated more favorably — up to five years is often enforceable when the restriction protects goodwill transferred to the buyer.
What happens if I move out of Florida?
Florida courts can still enforce Florida non-competes against former Florida employees who relocate, provided they had sufficient contacts with Florida. Conversely, moving to a state that won’t enforce non-competes (California, North Dakota, Oklahoma, Minnesota) is not an automatic escape — you can still be sued in Florida.
Need help?. If you’re an employer drafting or updating non-compete agreements, or an employee considering a job change that might trigger one, email john@montague.law. We’ll send back a risk-assessment memo tailored to your specific situation.
