Federal Trade Commission requests public input on non-compete contracts

Federal Trade Commission Initiates Public Inquiry on Employee Noncompete Agreements, Citing Abuse Concerns; Comments Sought Through Regulations.gov Within 60 Days.

, and Administrator

2025 September 15 . 5:03 AM

1 min read

Federal Trade Commission seeks public feedback on employment contracts limiting work competition

Federal Trade Commission requests public input on non-compete contracts

The Federal Trade Commission (FTC) has announced a public inquiry into the use of employee noncompete agreements. The aim of the inquiry is to gather information on the prevalence, geographic distribution, and impact of these agreements in various industries.

The FTC is particularly interested in understanding the potential harm caused by the abuse of noncompete agreements. They note that these agreements can serve a valid purpose in some circumstances, but are often subject to abuse.

The organization encourages comments from a wide range of stakeholders, including employers, employees, and advocacy groups. The public will have 60 days to submit their comments on the use of employee noncompete agreements. Comments can be submitted through Regulations.gov.

The FTC is seeking public input on the effectiveness of noncompete agreements in protecting legitimate business interests. They also aim to explore the impact of these agreements on competition and worker mobility. The FTC will evaluate the economic and social costs associated with the use of noncompete agreements.

The inquiry may lead to potential changes in the enforcement of noncompete agreements. The FTC will consider the comments received during the inquiry when deciding on future actions regarding these agreements.

The FTC itself is the organization conducting the public investigation into the use of employee non-compete agreements. They have expressed concern over the potential abuse of these agreements and their impact on the economy and workers.

If you have experiences, insights, or opinions on the use of employee noncompete agreements, the FTC encourages you to submit your comments during the public comment period, which ends in 60 days. Your input could help shape the future of noncompete agreement enforcement in the United States.