FTC Proposes Federal Ban on Employment Non-Compete Agreements

by | Jan 24, 2023 | Noncompetes

The Federal Trade Commission (FTC) recently proposed a federal ban on employment non-compete agreements. This move has been met with criticism from industry advocates and legal professionals, who argue that the FTC’s plan is an overreaction to the occasional misuse of legitimate contract language. Some argue that the FTC’s plan would usurp the traditional role of state legislatures and state courts in determining whether noncompetes are reasonably crafted, and question whether the FTC even has the authority to impose a blanket ban.

How Would a Federal Non-Compete Ban Impact Florida Employees?

If the Federal Trade Commission’s (FTC) proposed ban on non-compete agreements is passed, it would have a significant impact on Florida employees. The ban would make non-compete agreements unenforceable at the federal level, meaning that employers would not be able to prevent employees from working for a competitor or starting their own business. This could potentially increase job mobility and entrepreneurship opportunities for Florida employees.

Additionally, it would mean that any non-compete agreements in Florida would likely be unenforceable, as the federal law would take precedence over state laws.

However, it’s important to note that, as previously mentioned, the proposed ban is still just that, a proposal and it might not be passed in its current form or at all. Additionally, it’s likely that even if the proposed ban was passed it would be challenged in court, which could further impact how the ban is enforced and the extent to which it impacts state laws.

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