The landscape of non-compete regulations underwent significant changes in 2025, influenced by a new administration’s approach to federal oversight and notable shifts in state legislation. On the latest episode of the Spilling Secrets podcast series, legal experts from Epstein Becker Green discuss the evolving regulatory environment, emphasizing both challenges and opportunities for employers navigating this complex terrain.
The Federal Trade Commission (FTC) continues its efforts to scrutinize unreasonable non-compete agreements, despite having withdrawn its nationwide ban appeal. This ongoing federal enforcement underscores the importance for employers to remain vigilant and informed about their obligations. While broad federal prohibitions may have stalled, the regulatory environment at the state level is rapidly changing, presenting unique challenges.
Florida has emerged as a particularly employer-friendly jurisdiction following the enactment of the Contracts Honoring Opportunity Investment Confidentiality and Economic Growth Act. This legislation explicitly permits restrictive covenants to last up to four years, solidifying Florida’s stance in favor of employers. This development may influence businesses’ strategic decisions, particularly in industries that rely heavily on proprietary information and competitive advantage.
In addition to Florida’s advancements, significant non-compete legislation is pending in various states including Illinois, Washington, and New York. Employers operating in these regions should closely monitor potential changes, as state-specific regulations can vary widely and impact workforce mobility.
Legal experts Daniel R. Levy, Carolyn O. Boucek, and David J. Clark of Epstein Becker Green break down these critical developments on the podcast, providing insights into the implications of these changes for businesses and their workforce management strategies.
As 2025 progresses, the complex interplay between federal enforcement and state legislation will continue to shape the future of non-compete agreements. Employers are encouraged to stay informed about these trends to effectively navigate the evolving regulatory landscape. The need for tailored legal strategies has never been more pressing as jurisdictions adapt to new economic realities and workforce dynamics.
