While the Federal Trade Commission no longer supports a ban on noncompetes, Warner Norcross + Judd LLP employment attorney Dean Pacific recently told Crain’s Grand Rapids Business that doesn’t mean anything goes.
“Take the FTC seriously,” Pacific said. “They want people to know that just because this administration didn’t support the nationwide ban that was proposed by the last administration and that was held up in the courts, it didn’t mean that anything goes on noncompetes. They are going to continue to take a closer look at them.”
Earlier this month, the FTC withdrew its appeal of two court rulings that struck down a 2024 rule banning noncompetes outright. But it also made clear the agency is not backing off from challenging the use of noncompetes. Pacific cited a number of recent enforcement actions that signal the agency’s intent to address issues with noncompetes on a case-by-case basis.
Pacific recommended employers re-examine their policies to ensure they “line up with what the FTC has suggested that that they think is appropriate.”
“If you’re having a longer than average duration, you may have a problem. If you have a very broad geographic scope, you may have a problem depending on the individuals and the company’s scope of business,” Pacific told the publication. “I do think they’re going to be looking for employers to make an example of.”
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