Since 2025, when the effort to federally regulate noncompete agreements suffered several court defeats, we have continued to see states adopt varying approaches to noncompete law.
Since 2025, when the effort to federally regulate noncompete agreements suffered several court defeats, we have continued to see states adopt varying approaches to noncompete law.
On one end of the spectrum is California and its long-standing approach of prohibiting employment-based noncompete agreements. California is not the only state to enact a noncompete ban, but California’s ban is uniquely far reaching. Under California Business and Professional Code § 16600.5, California’s ban applies no matter where the agreement was signed. Florida is on the other end of the spectrum. It recently enacted a first-of-its-kind noncompete law that strengthens an employer’s ability to enforce such agreements. As we explained here, effective July 1, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (CHOICE Act or the Act) creates a presumption of enforceability for agreements that comply with the Act’s notice requirements and income thresholds. The Act also requires courts to grant injunctive relief in the event of a breach.
With 51 varied solutions to noncompete law, employers across the country find themselves confronting a similar problem: What happens if an employee is hired in Florida, for instance, and signs an agreement drafted for Florida’s CHOICE...
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