It has been a busy month for the Federal Trade Commission (“FTC”) and enforcement activity concerning non-compete restrictive covenants in employment agreements. If you have been following this topic, you’ll recall that during President Biden’s administration in 2024, the FTC issued a rule banning non-compete provisions in employment agreements with certain exceptions.

That led to immediate litigation, challenging the FTC’s authority to implement such a rule. Appeals were pending in two federal Circuits until early September of this year, at which time the FTC voluntarily withdrew both appeals. In doing so, the FTC Chair indicated that the FTC would continue its enforcement actions on a case-by-case basis.

This statement was emphasized by simultaneously filing an administrative complaint

See Full Page