September 10, 2025
FTC’s 3rd Statement in 5 Days Re: Noncompetes & More
First, the FTC announced on September 4th that it was seeking public comments on employers’ use of noncompete agreements and other restrictive covenants.
The next day, on September 5th, the FTC announced it was seeking to dismiss its appeal to the ban on the noncompete rule published last year.
Now, the FTC announces it sent a letter to several large healthcare employers and staffing firms urging them to conduct a comprehensive review of their employment agreements—including any noncompetes or other restrictive agreements—to ensure they are appropriately tailored and comply with the law. (emphasis added)
Not a Healthcare Employer or Don’t Use Noncompetes? Take note! The FTC Chair Andrew N. Ferguson writes, “We strongly encourage all employers—not just those receiving letters today—to review their contracts closely, to ensure that any restrictions on employee mobility are in full compliance with the law.” (emphasis added)
If you use any restrictive covenant such as a non-solicitation, non-disclosure, no-rehire or other agreement that may restrict an employee’s prospective employment opportunities, be sure you have your employment counsel review it for compliance with federal and state rules.
