5 Steps Employers Should Take Regarding the FTC's Rules on Noncompete Agreements

Posted by Fisher Phillips on Sep 15th 2025

The FTC has activated its Joint Labor Task Force to crack down on noncompete agreements that it deems anticompetitive. Fisher Phillips
Its first enforcement action challenged a large employer for requiring noncompetes with all new hires, regardless of their job role.
The FTC signaled that customer nonsolicitation clauses are also under scrutiny, especially when they function like hidden noncompetes.
The much-debated broader noncompete ban from the earlier administration is no longer being defended; instead, enforcement will proceed case by case.
The agency has issued a Request for Information (RFI), asking the public/companies/employees to provide details about noncompete use, including scope, salary ranges, geography, etc.

Blanket noncompetes (requiring every employee to sign them) may now draw heavy FTC enforcement scrutiny. If your contracts impose noncompetes on roles that do not justify them, you may face legal risk.
Overbroad or vague noncompetes in duration, geography, or duties could be struck down, or give rise to enforcement actions.
Nonsolicitation clauses that go too far — e.g. preventing employees from dealing with customers they didn’t personally serve — may now be viewed similarly to noncompetes.
Because state laws vary, failing to adjust your restrictive covenants to each jurisdiction can compound risk.
The public RFI means your use of noncompetes could be exposed; transparency demands reviewing your policies now.

Here are ways fpSOLUTIONS tools and products can help you respond proactively, stay compliant, and minimize risk:

Compliance Products: Use restrictive covenant templates that are narrowly tailored — limiting scope, duration, geography — and that adhere to both FTC guidance and state law. Also get sample nonsolicitation, confidentiality, and trade-secrets agreements.
All Access Products Pass Without Handbook: Provide your HR, legal, and leadership teams with policy libraries, training modules on noncompete law updates, and checklists for auditing existing noncompete agreements.
State-Specific Contract Packs / Multistate Compliance Tools (if available via fpSOLUTIONS): Since state law varies dramatically, use these tools to adjust your noncompete / nonsolicitation provisions to adhere to the strictest applicable rules in your workforce footprint.
Trade Secrets & Confidentiality Frameworks: For positions where noncompetes are problematic, strengthen alternative protections like trade secrets policies, confidentiality agreements, customer relationship protections (policies governing solicitation), so you still protect business interests without overreaching.