Noncompete Agreements in 2026: A Federal and State Overview

Short summary

The FTC's 2024 nationwide noncompete ban was blocked in court and formally withdrawn in September 2025, leaving no federal prohibition in effect. A bipartisan Workforce Mobility Act remains stalled in Congress, while over 35 states have introduced 150+ bills to restrict noncompetes, creating a complex patchwork ranging from complete bans (California) to strengthened enforcement (Florida's CHOICE Act). Employers must navigate varying state-level rules on salary thresholds, industry exemptions, and enforceability conditions.

• •FTC nationwide noncompete ban withdrawn in Sept 2025; no federal prohibition currently in effect
• •35+ states have introduced 150+ bills restricting noncompetes, creating a patchwork of complete bans, partial bans, and general enforceability
• •Florida's CHOICE Act (July 2025) is a notable outlier, strengthening noncompete enforcement for high-wage earners

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