FTC Seeks Public Input On Noncompete Agreements

September 22, 2025

What's New

The Federal Trade Commission issued a “Request for Information Regarding Employer Noncompete Agreements” to better understand the scope, prevalence, and effects of employer noncompete agreements. The agency is gathering input to inform potential future enforcement actions.

Noncompete agreements prohibit employees from joining competitors or starting a competing business after leaving a job.

The FTC is especially seeking comments from workers who have been restricted by noncompetes and employers facing hiring challenges due to competitors’ noncompete agreements.

FTC Chairman Andrew Ferguson said the public comments will help the agency prioritize investigations and enforcement.

Comments are due November 3 and can be submitted through Regulations.gov.

What It Means

The FTC’s request signals a shift in approach. Rather than pursuing a nationwide ban, the agency will now evaluate restrictive noncompete clauses on a case-by-case basis.

This follows the FTC’s September 5 decision to drop its appeal of a court decision that blocked a Biden-era rule banning most noncompetes.

Despite the FTC’s reversal on whether it has the authority to ban non-compete agreements nationwide, the agency’s request for information signals that it still has an interest in protecting employees from overly broad non-compete restrictions.

What You Should Do

CWC does not intend to submit comments but will reconsider if there is sufficient member interest. Feedback can be sent to [email protected]. Members seeking more information on state-level noncompete laws can refer to our resource: “Non-Compete Agreement Restrictions.”

RELATED CONTENT

Subscribe to CWC's Updates and Events

CLICK TO SIGN UP