The Federal Trade Commission (FTC) held a half-day program on January 27, 2026, focused on employee non-competes. The FTC indicated its intent to pursue prosecution of agreements that violate anti-trust or otherwise inappropriately limit employee choice. However, the FTC is not re-proposing the prior rule banning non-competes. If workers have issues, the agency suggests they contact the FTC at [email protected] for assistance.
The FTC states that it has adequate existing rules and legal precedent to pursue these issues on behalf of employees without regulatory changes, with a focus on the “reasonableness” of any agreement.
Recognizing that non-competes can negatively impact employee opportunity and the ability of an employer to expand its business due to a limited staffing pool, the FTC stated it will focus, like earlier court decisions, on reasonableness. Suppression of competition is not considered a reasonable purpose and likely would violate FTC expectations. The definition of competition is fairly broad, including in part “competing for workers.”
The FTC, like the Equal Employment Opportunity Commission (EEOC) and how it enforces The Americans with Disabilities Act, will focus on a case-by-case analysis, further stating that a primary element of any assessment will be if the agreement’s “anti-competitive effects outweigh its competitive advantages.” The FTC indicated that it may also “blue pencil” an agreement, in other words, use an amendment process.
The FTC will...
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