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ARTICLE · 07 JANUARY 2026

A Quick Q&A On Restrictive Covenants As We Start The New Year

Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
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Happy New Year! At the end of 2025, Benesch's Trade Secret, Restrictive Covenants and Unfair Competition Group fielded several common questions regarding the FTC and the state of restrictive covenant law.

United StatesIntellectual Property
J. Scott Humphrey
J. Scott Humphrey
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Key Takeaways

  • The FTC's noncompete ban is dead; enforceable agreements are still valid under state law.
  • Noncompetes aren't extinct, but state restrictions are increasing.
  • Review agreements for multi-state compliance; consider state-specific carveouts.

Happy New Year! At the end of 2025, Benesch's Trade Secret, Restrictive Covenants and Unfair Competition Group fielded several common questions regarding the FTC and the state of restrictive covenant law. Below is a short Q&A regarding what is going on and what companies should consider when drafting restrictive covenants.

Q: What is the status of the FTC's proposal to ban noncompete agreements?

A: It is dead.

Q: Are you sure?

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