Changes to Non-Compete Enforcement

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In a significant pivot, the Federal Trade Commission (FTC) on September 4, 2025, dropped its appeals against court blocks on a sweeping nationwide ban on non-compete clauses, opting instead for a more surgical approach to policing these agreements. By pulling back those challenges in the Fifth and Eleventh Circuits, the agency signaled a retreat from blanket prohibitions, embracing individual case reviews under existing antitrust laws like the FTC Act and Sherman Act.

Commissioner Mark Meador considerations that should be made when drafting a Non-Compete: consider worker pay and skills, industry setup (like franchises), contractor status, training investments, viable less restrictive alternatives (e.g., NDAs), agreement breadth, and the company’s market clout.

What This Means for Employees and Contractors

Workers facing non-compete hurdles now have a clearer path to freedom, but it hinges on specifics rather than a one-size-fits-all fix. The case-by-case crackdowns could invalidate overly broad clauses, especially those blanket-applied to entry-level staff or spanning unrealistic distances, opening doors to new jobs without legal fears. If you’ve signed one, watch for employer notifications voiding invalid terms, and consider contacting Gilbert Law Group to discuss your options. This targeted strategy empowers mobility for everyday roles while still allowing justified protections for high-stakes positions—ultimately boosting job market fluidity.

What This Means for Businesses

For employers, prudence dictates speaking with counsel to audit your contracts as well as provide guidance on drafting future Non-Compete provisions.

Call Gilbert Law Group today to schedule a consultation!