Updated October 2026.

This September 2024 post records how a federal court in Texas blocked the Federal Trade Commission's non-compete ban before it took effect. Miami business attorney Aaron Resnick of Law Offices of Aaron Resnick keeps it as a dated record. Florida law governed Florida non-competes before the ruling and governs them now.

What Did the FTC Propose in January 2023?

In January 2023 the FTC proposed a rule to ban non-compete agreements with workers. The January 2023 proposal would have barred employers from entering into new non-competes, required them to rescind existing ones, and allowed a narrow exception for the sale of a business. It was a proposal, not a rule in force.

• New non-competes: the proposal would have prohibited employers from entering into or attempting to enter into non-competes with workers.
• Existing non-competes: the January 2023 proposal would have required employers to rescind existing non-competes and notify affected workers that the agreements were no longer in effect.
• Sale of a business: the January 2023 proposal would not have applied to a non-compete between a buyer and a seller who held at least a 25 percent ownership interest in the business being sold.

The proposal never became law. Aaron Resnick reads a Florida non-compete under chapter 542 and, for a covered employee, the CHOICE Act.

What Did the April 2024 Final Rule Change?

The FTC's final rule, issued in April 2024 and scheduled to take effect September 4, 2024, differed from the proposal. It would have prohibited new non-competes with all workers, left existing non-competes with senior executives in force, and made other existing non-competes unenforceable, with notice to those workers in place of formal rescission.

The final rule also dropped the 25 percent ownership threshold from the sale of business exception.

Aaron Resnick reads an agreement signed in 2024 under Florida law, because this rule never applied to it.

How Did the Court Block the Rule?

On August 20, 2024, the U.S. District Court for the Northern District of Texas set the rule aside in Ryan, LLC v. FTC, 15 days before its effective date. The court held that the FTC had exceeded its statutory authority and that the rule was arbitrary and capricious. The ruling applied nationwide.

Law Offices of Aaron Resnick follows the case from the ruling to the rule's removal in FTC Non-Compete Ban: What Happened and What Florida Law Says.

What Happened After the Ruling?

On September 5, 2025, the FTC took steps to dismiss its appeals and accept that ruling. On February 12, 2026, the FTC removed the rule from the Code of Federal Regulations. The FTC has said it will still bring enforcement actions against specific non-competes it considers anticompetitive.

Aaron Resnick reviews a company's agreements for that enforcement risk when it uses them across a large workforce.

Which Law Applies to a Florida Non-Compete Today?

Florida law does. Chapter 542 of the Florida Statutes sets the rules a Florida court applies, and the 2024 federal rule changed none of them. Miami business attorney Aaron Resnick of Law Offices of Aaron Resnick explains those rules on the firm's page Are Non-Compete Agreements Enforceable in Florida?

Send the parties, the problem and the next date; the firm reviews every inquiry and tells you whether it can help.

We Don't Make Promises. We Have Results to Prove It.

Aaron Resnick has handled business disputes in Miami since 1998 and is a fourth generation Miami attorney. He works hands-on on every case; the client gets Aaron on every major litigation issue, not a junior partner. The Law Offices of Aaron Resnick represents employers and employees in Miami Dade, Broward and Palm Beach counties and across Florida in drafting, enforcing and defending non-compete agreements. Call 305-672-7495 or request a consultation.

This page provides general information and is not legal advice. Prior results do not guarantee or predict a similar outcome.

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