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ARTICLE · 18 NOVEMBER 2025

Enhanced Crackdown On Non-Compete Agreements

Dickinson Wright PLLC
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It has been a busy year for the Federal Trade Commission's ("FTC") enforcement efforts against non-compete restrictive covenants in employment agreements.

United StatesEmployment and HR
Kimberly Ruppel
Kimberly Ruppel
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It has been a busy year for the Federal Trade Commission's ("FTC") enforcement efforts against non-compete restrictive covenants in employment agreements. During President Biden's administration in 2024, the FTC issued a rule banning non-compete provisions in employment agreements with certain exceptions (the "Rule"). That led to immediate litigation challenging the FTC's authority. Appeals were pending in two federal Circuits until early September of this year, at which time the FTC voluntarily withdrew both appeals, acknowledging the over-breadth of the Rule. In doing so, the Trump administration's FTC Chairman, Andrew Ferguson, indicated that the FTC would continue its enforcement actions on a case-by-case basis.

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