Updated October 2026.

This June 2024 post records what the Federal Trade Commission's non-compete rule said before a court set it aside. Miami business attorney Aaron Resnick of Law Offices of Aaron Resnick keeps it as a dated record. The rule never took effect, and Florida law governs a Florida non-compete.

What Did the FTC's Final Rule Say in 2024?

The Federal Trade Commission issued a final rule on April 23, 2024 that would have banned non-compete agreements for most workers nationwide. It was published on May 7, 2024 with an effective date of September 4, 2024. A federal court set it aside before that date, and it never applied to any employer.

The rule defined "worker" to include employees, independent contractors, externs, interns, volunteers, apprentices and sole proprietors who provide services, subject to the FTC Act's jurisdictional limits. Its main terms, as written:

• New non-competes with all workers, including senior executives, would have been prohibited.
• Existing non-competes with workers other than senior executives would have become unenforceable; existing non-competes with senior executives could have remained in force.
• The rule defined a senior executive as a worker in a policy-making position who received total annual compensation of at least $151,164.
• The final rule would not have applied to a non-compete entered into as part of a bona fide sale of a business entity, an ownership interest in a business entity, or all or substantially all of a business entity's operating assets.
• Employers would have had to give clear and conspicuous notice by the effective date to workers other than senior executives whose existing non-competes could no longer be enforced.

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

Would the Rule Have Replaced Florida Law?

Only in part. As written, the FTC's final rule would have superseded Florida law only to the extent Florida law permitted conduct the federal rule would have prohibited or conflicted with the federal notice requirement. Because the rule never took effect, Florida law was not displaced.

Aaron Resnick reads a Florida non-compete under chapter 542 and, for a covered employee, the CHOICE Act.

What Happened to the Rule in Court?

The rule was challenged in federal court in 2024. 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 FTC dismissed its appeals in September 2025 and removed the rule on February 12, 2026.

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

What Governs a Florida Non-Compete Now?

The rule described above never took effect, so no Florida business has to change an agreement because of it. Florida law decides whether a non-compete is enforced. Miami business attorney Aaron Resnick of Law Offices of Aaron Resnick explains the current 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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