Articles Posted in Trade Secrets and Restrictive Covenants

As Tom Petty once sang, “The waiting is the hardest part.” Employers waiting on the uncertain fate of the Federal Trade Commission’s non-compete rule can relate. With the initial sweeping ban announced in 2024 and legal challenges that followed, many businesses have been left wondering how to structure their workforce policies. Now, recent developments suggest that the FTC may be rethinking its approach, offering some clarity—though not yet certainty.

A New FTC Memo

The FTC has recently taken steps to address non-compete agreements, a long-debated issue in the job market. In a memo dated February 26, 2025, FTC Chairman Andrew N. Ferguson announced the creation of a Joint Labor Task Force to look into unfair labor practices, with non-compete agreements highlighted as a key focus. The memo states that non-compete agreements can impose unnecessary, burdensome restrictions on workers, limiting their ability to switch jobs and negotiate higher wages. The task force is charged with investigating these agreements, sharing research on their impact, and recommending regulatory or legislative actions to address abusive practices.

Yesterday, the Federal Trade Commission announced that it had ordered a building services contractor to stop enforcing a no-hire agreement. The agreement purportedly prohibited building owners and managers from hiring the contractor’s employees.

Continue reading