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ARTICLE · 17 DECEMBER 2025

How To Draft Strong Noncompetes And Restrictive Covenants

Bass, Berry & Sims PLC
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Balancing business protection with enforceability across diverse—and rapidly changing—laws...

United StatesEmployment and HR
Robert W. Horton
Robert W. Horton

Highlights:

  • The most enforceable noncompetes align with the employee's role, state laws, and a clearly defined protectable interest.
  • Courts now favor narrow non-solicit and confidentiality agreements over broad noncompetes.
  • With inconsistent state laws and federal scrutiny, employers must tailor restrictive covenants by jurisdiction.

Although the Federal Trade Commission (FTC) announced that it was ending its appeals of decisions in the Fifth and Eleventh Circuits which set aside the FTC nationwide noncompete ban, thereby ending its defense of the Biden administration's 2024 rule, the FTC simultaneously communicated that it intends to pursue enforcement action alleging anticompetitive conduct with respect to restrictive covenants that it views as being overly broad or unnecessary, and that it is particularly focused on the healthcare industry.

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