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Federal Trade Commission on Non-Compete Agreements (September 2025 Update)

While previous Federal and New York State attempts to completely ban non-compete agreements have not succeeded in recent years, the issue remains on the radar of regulatory authorities.  In particular, on September 10, 2025, the current Federal Trade Commission (“FTC”) issued a warning letter to various (unnamed) health care employers and staffing companies strongly suggesting that they conduct a comprehensive review of their employment contracts – specifically any non-compete agreements—to ensure they are legally compliant. 


While this letter was directed to specific parties, please note the following broad statement from the FTC:


“We recommend all employers to check—not just those receiving letters today—to review their contracts closely, to ensure that any restrictions on employee mobility are in full compliance with the law.” 

               

A copy of the FTC press release can be found at the following link:


A copy of the FTC letter can be found at the following link:


Additionally, while the Federal government may no longer be pursuing legislation to completely ban non-compete agreements, the FTC has recently issued a request for information from the public so that it can “better understand the scope, prevalence, and effects of employer noncompete agreements, as well as to gather information to inform possible future enforcement actions.”  This FTC press release from September 4, 2025, as well as the link to the public inquiry portal, can be located at the following site:


               

This public comment period will remain open for 60 days – through November 3, 2025.


In light of this enhanced federal activity, we recommend health care employers and staffing companies in particular review their existing non-compete provisions/agreements to ensure compliance with applicable legal requirements (including caselaw).


Please note that all links may expire in the future.



Our firm has extensive experience counseling individuals, businesses, and others on statutory and regulatory requirements, as well as preparing and implementing applicable policies and agreements. If you have any questions related to this Legal Briefing, please contact any member of our firm at 585-730- 4773.



This Legal Briefing is intended for general informational and educational purposes only and should not be considered legal advice or counsel. The substance of this Legal Briefing is not intended to cover all legal issues or developments regarding the matter. Please consult with an attorney to ascertain how these new developments may relate to you or your business. © 2025 Law Offices of Pullano & Farrow PLLC

 
 
 

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