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Thursday, October 22, 2026

The Future Of Restrictive Covenants According to the FTC - The National Law Review

In July 2021, President Biden signed an Executive Order directed at promoting competition in the U.S. economy. As part of that overarching goal, the Biden Administration tasked the Federal Trade Commission (“FTC”) with curtailing the use of non-compete clauses “and other clauses or agreements that may unfairly limit worker mobility.” While the FTC has only recently initiated informal proceedings on the issue, the agency – and perhaps Congress as well – seems poised to move forward in 2022 to address restrictive covenants.

Part of the delay on any action by the FTC can likely be attributed to vacancies at the commission. The FTC has been operating with four members (two Democratic Commissioners and two Republican Commissioners), with one vacancy, which leaves the FTC with a political tie effectively preventing it from making large-scale decisions. However, President Biden has now nominated Alvaro Bedoya to fill the remaining vacancy. His confirmation remains pending and will likely carry over into 2022.

Despite the gridlock, the FTC has nevertheless worked to lay the groundwork for initiating formal proceedings soon. Earlier this month, the agency (in coordination with the Department of Justice) held two days of workshops, informal fact-gathering, and panels – titled “Making Competition Work: Promoting Competition in Labor Markets” – on addressing “competition issues affecting labor markets and the welfare of workers.” The fact-gathering and presentations focused on...



Read Full Story: https://www.natlawreview.com/article/ftc-reviews-non-compete-agreements-updat...