FTC seeks public input on effects of employee noncompete agreements

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Andrew N. Ferguson Chairman | Federal Trade Commission

FTC seeks public input on effects of employee noncompete agreements

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The Federal Trade Commission (FTC) has initiated a public inquiry aimed at gathering information about employer noncompete agreements. The request seeks to understand how widespread these agreements are, their impact on workers and employers, and to collect data that could inform future enforcement actions.

Noncompete agreements are contractual terms that generally prevent workers from joining competing businesses or starting their own in the same field after leaving a job. While they can have legitimate uses, research suggests that such agreements are often misused.

The FTC is encouraging input from members of the public, including both current and former employees who have been restricted by noncompete clauses as well as employers who face challenges hiring due to competitors’ use of these agreements.

“We are asking the public to help shine a light on unfair and anticompetitive agreements,” said Kelse Moen, Deputy Director of the Bureau of Competition and co-chair of the agency’s Joint Labor Task Force. “Unreasonable noncompete agreements have proliferated for too long in the dark. With the assistance of the employees and workers most burdened by them, the Trump-Vance FTC intends to uproot the worst offenders and restore fairness to the American labor market. We look forward to closely reviewing every response.”

Public comments will be accepted for 60 days through Regulations.gov until November 3, 2025. All submissions will be made publicly available unless submitted confidentially according to alternative guidelines outlined in the request for information.

The FTC continues its mission to promote competition while protecting consumers. The agency reminds consumers that it does not demand money or make threats, nor does it promise prizes or instruct individuals to transfer funds. More information about competition benefits for consumers, how to file an antitrust complaint, or comment on proposed mergers is available on their website. Updates can also be found via social media channels and blog posts.

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