As you may recall, in April 2024 the Federal Trade Commission (“FTC”) attempted to implement a nationwide rule that would ban almost all non-compete agreements. In August 2024, a federal district court in Texas set aside the rule, holding that it was unconstitutional.

This year, under the new administration, the FTC withdrew an appeal of that Texas decision and abandoned efforts to implement a broad ban on non-compete agreements. However, on September 10, 2025 the FTC issued a press release announcing that it has issued warnings to several large healthcare employers and staffing firms to conduct a careful review of any noncompete agreements and other restrictive covenants to ensure they are appropriately tailored and comply with the law.

According to the FTC, “many healthcare employers and staffing companies include noncompete agreements (“noncompetes”) in employment contracts that may unreasonably limit employment options for vital roles like nurses, physicians, and other medical professionals. Noncompetes may have particularly harmful effects in healthcare markets where they can restrict patients’ choices of who provides their medical care.”

In particular, the FTC noted that noncompetes may be overbroad in duration or geographic scope, or may be inappropriate for certain roles entirely. The FTC also noted that many employers impose noncompetes without considering whether less restrictive terms may achieve the same purposes. The FTC urged healthcare employers and staffing agencies who are using noncompetes that are “unfair or unlawful” to discontinue them immediately and notify relevant employees of their discontinuance.

The FTC also encouraged all employers – not just the healthcare employers and staffing agencies – to review their employment agreements closely and ensure they are compliant. Employers should consult with counsel to ensure they are implementing enforceable noncompete agreements as well as other post-employment restrictive covenants.

The press release is here: FTC Chairman Ferguson Issues Noncompete Warning Letters to Healthcare Employers and Staffing Companies | Federal Trade Commission

The warning letter is available here: Template for Noncompete Agreements