Understanding Noncompete Agreements After the FTC's Reversal

ARTICLE | November 12, 2025

For years, noncompete agreements have existed at the intersection of competing interests, creating a tension that has only intensified in recent times. On one side, employers view these restrictive covenants as essential tools for protecting their most valuable assets—the intellectual property they've developed, the customer relationships they've cultivated, the pricing strategies that give them competitive advantages, and the operational processes that make their businesses unique. On the other side, employees and labor advocates argue that these same agreements create artificial barriers that prevent workers from pursuing better opportunities, effectively suppressing wages and diminishing the bargaining power that comes from having genuine career mobility.

This longstanding debate reached what many believed would be its conclusion in April 2024, when the Federal Trade Commission announced a final rule that would have fundamentally transformed the employment landscape by banning most noncompete agreements across the country. The proposed ban represented a seismic shift in employment law, one that would have required employers to notify affected workers that their existing noncompetes would no longer be enforced and would have prohibited companies from entering into new such agreements going forward. For a brief moment, it appeared that decades of controversy surrounding these restrictive covenants would be resolved through federal regulatory action.

However, that sweeping change never materialized. Understanding where things stand today—and what practical steps employers should take to protect both their legitimate business interests and their employees' rights—has never been more crucial. This article aims to help businesses understand the current state of noncompete law and the risks and opportunities that exist in this environment.

Read the full article here.

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