Non-compete agreements have been a hot topic for the past few years—and they are not going away anytime soon. After a flurry of proposed federal rules, lawsuits, and administrative shifts, we finally have some clarity on where things stand in late 2025.
Here is what is new, what it means for practitioners and employers, and what you should be watching for next.
A Quick Refresher: The FTC’s Attempt to Ban Non-Competes
In 2024, the Federal Trade Commission (FTC) announced a sweeping rule to ban non-compete agreements nationwide. The goal was to protect workers’ ability to earn a living and prevent overly restrictive employment terms.
But that rule faced immediate legal challenges. Federal courts ruled that the FTC did not have the authority to implement such a broad ban. The issue has been tied up in appeals ever since—until recently.
A Shift in Leadership, a Shift in Strategy
With the change in administration from President Biden to President Trump, the FTC itself changed course. Under the new chairman, Andrew Ferguson, the agency officially abandoned its appeal in September 2025.
That decision means there is no longer a pending attempt to ban non-competes nationwide. However, that does not mean the FTC has given up.
Chairman Ferguson has stated that while non-compete agreements can serve a purpose, they are often “pernicious” and “abused to the effect of severely inhibiting workers’ ability to make a living.”
As a result, rather than pushing for a blanket ban, the FTC is now taking a targeted enforcement approach—going after specific companies whose non-compete practices may be overly restrictive or harmful.
The First Wave of Enforcement
Shortly after dropping the appeal, the FTC filed suit against a large pet cremation company over its use of non-compete agreements. Although that case is still pending, it marks the beginning of a new enforcement trend.
The FTC has also sent letters to large employers and staffing firms in the healthcare sector, warning them to review and potentially revise their non-competes.
These letters act as formal warnings, signaling that even though the agency is not pursuing a nationwide ban, it will continue to scrutinize and challenge non-competes it deems unfair—especially in large organizations and industries that affect public access to care, including practitioners.
What This Means for Employers and Employees
For now, non-competes remain legal and enforceable, but the landscape is shifting. Here is what to keep in mind:
- Reasonableness matters. Courts and regulators continue to look at whether the geographical scope, duration, and restrictions of a non-compete are reasonable and still allow an employee to earn a living.
- Large employers are under the microscope. If your organization operates in a regulated field, expect closer scrutiny.
- Policy reviews are essential. Now is the time for companies—especially hospitals and staffing firms—to review their employment contracts and ensure compliance with both state laws and federal guidance.
- Employees have growing leverage. Even without a national ban, there is momentum toward loosening restrictions that prevent workers from changing jobs, starting new practices, or pursuing opportunities in their field.
A Sign of Things to Come
While it is unclear what the FTC’s next moves will be, it is clear that non-competes are not going away quietly. Expect continued debate, incremental changes, and possibly more state-level reforms limiting their scope.
For employers, this means ongoing vigilance. For employees, it may mean new opportunities for flexibility and mobility in the years ahead.
The Bottom Line
The FTC’s retreat from a nationwide non-compete ban does not close the book—it simply opens a new chapter. The agency’s actions show a continued interest in balancing business protections with fair competition and worker freedom.
If you are an employer or healthcare professional, now is the time to:
- Review your current non-compete agreements.
- Ensure they are reasonable and compliant.
- Seek legal guidance before making changes or enforcing existing agreements.
As this area of law continues to evolve, staying informed and proactive is your best defense.
If you have questions about non-competes or employment agreements, contact your attorney for the latest updates and guidance on how these evolving rules may affect your practice or business.
About Stephanie Rodin
Stephanie Rodin is a Partner at Mandelbaum Barrett PC, a full-service law firm that has been serving clients since 1930. The firm takes a collaborative and proactive approach to legal counsel, advocating for clients with care, attention, and dedication.
Before joining the firm, Stephanie was the founder and principal of Rodin Legal, P.C., and has been practicing law since 2000. She has dedicated her career to supporting healthcare professionals, with a deep understanding of their unique challenges. Having grown up in a family of medical and dental practitioners, Stephanie brings a personal perspective to her legal work, combining industry knowledge with legal expertise.