If you thought non-compete laws were set in stone, 2025 has proven otherwise!
With the patchwork of recent state-level changes and high-profile federal decisions, employers and HR professionals can’t afford to stay on autopilot. Protecting your business has never been more complicated—or more important. Let’s break it down so you can enter 2026 ready, compliant, and confident.
Why All the Fuss?
States are redefining who can (and can’t) be bound by non-competes. Key example: the Florida CHOICE Act, now limiting valid non-compete agreements to higher-paid professionals and redefining who counts as a covered employee. Meanwhile, the federal landscape remains unsettled after the FTC’s nationwide ban was blocked by the courts (still not in effect as of 12/31/25).
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- Do your non-competes meet new pay thresholds? (Think $80,000–$150,000 in Florida, varying by county.)
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- Does your agreement follow your state’s latest requirements? Many other states have adopted rules similar to—or stricter than—Florida’s.
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- Are you relying on outdated templates, risking enforceability and lawsuits?
What Should You Do?
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- Audit Your Existing Agreements: Pull out all active non-competes and compare them to your state’s current law. Identify which employees are likely covered under new pay levels or job categories.
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- Explore Alternatives: For team members who no longer qualify for a non-compete, consider robust confidentiality and non-solicitation agreements. These can still protect client lists, trade secrets, and other vital interests.
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- Update Onboarding: Adjust hiring policies—not just contracts! Make sure you aren’t promising protection your state’s laws won’t back up.
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- Stay Proactive with Legal Guidance: Partner with an employment attorney in your state for all agreements and big changes. DIY legal work here is like skydiving without checking your parachute!
For a free list of state-by-state non-compete rules, check out this resource I found (not mine) https://eig.org/state-noncompete-map/
