Clifford Chance

Client Guidance: FTC Withdraws Appeal of Non-Compete Rule, But Its Action Against Gateway Pet Memorial Services Signals That Enforcement Against Restrictive Non-Compete Clauses on a Case-by-Case Basis Is the New Norm and May Lead to a String of Enforcement Actions

September 10, 2025

The Federal Trade Commission's view of employment agreements that restrict workers from moving to competitor firms has shifted again.  Three days after Labor Day, the FTC put the final nail in the Biden administration's broad rule banning non-compete clauses while making it clear that overly restrictive non-compete clauses will still be challenged as unfair methods of competition under FTC Act Section 5 on a matter-by-matter basis. 

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