FTC Adjusts Focus on Non-Competes

The Federal Trade Commission (FTC) approach to non-compete agreements is taking shape: 

• The Commission will no longer defend, and will eventually rescind, the Biden-era rule which prohibits most non-compete agreements and is currently blocked from taking effect by court order. 

• The Commission issued a request for information on how non-compete agreements unlawfully restrict competition. 

What’s next: The Association will submit comments to the FTC on the importance of non-compete agreements for protecting investments in talent and proprietary information. 

💻Please reach out to [email protected] to provide your company’s perspective and inform our advocacy—your feedback is always valuable! 

Why it matters: Employers should not expect the Trump administration to fully replace the Biden-era non-compete ban. The FTC is still likely to pursue enforcement against non-compete agreements it deems unreasonable, especially those affecting low-wage workers.

• The FTC acknowledges that “noncompete agreements can serve valid purposes in some circumstances,” but notes that “available evidence indicates that they are often subject to abuse.” 

• Kelse Moen, co-chair of the FTC’s new Labor Task Force, stated that the FTC “intends to uproot the worst offenders.”  

• The FTC will use the results of its information request to inform its likely aggressive enforcement strategy focused on achieving results through case-by-case enforcement and press releases. 

Employer takeaways: While a new federal ban on non-compete agreements does not appear to be in play, the Trump FTC has made it clear that it will target unfair labor practices generally and unreasonable non-compete agreements specifically.  

• Given continued scrutiny at both the federal and state levels, employers should review their employment agreements on a rolling basis both to ensure compliance and their strategic necessity in the shifting landscape.  

SCOTUS backs Trump FTC firing: The Supreme Court temporarily backed President Trump’s authority to fire two Democratic Commissioners of the FTC (Rebecca Slaughter and Alvaro Bedoya), reversing a lower court decision that reinstated Slaughter after her initial termination in March 2025.  

• Trump continues to assert his control over erstwhile independent agencies with the Supreme Court so far granting him the ability to do so.  

• The Court will issue a final ruling on the President’s authority to terminate agency heads, such as the FTC, the NLRB and others, in the near future—and it appears increasingly likely that they will side with the President.  

• Such a decision would give the President near total control over agencies and their respective policy and regulatory power, further politicizing federal regulation.