This website uses cookies. By using this website, you agree to our Cookie Policy.
Federal Trade Commission Enforcement Action Suggests it Will Treat Employee Non-Competes as “Inherently Suspect”
Reprinted from: NYU | 10/23/2025Cadwalader counsel Bilal Sayyed recently authored an article in New York University's Compliance & Enforcement blog analyzing the FTC’s September 2025 decision to abandon its Non-Compete Clause Rule while signaling continued enforcement efforts against broad non-compete agreements under Section 5 of the FTC Act.
The article highlights the FTC’s first enforcement action under the Trump Administration against Gateway Services, Inc., treating non-competes as inherently suspect and requiring employers to justify their necessity over less restrictive alternatives.
Bilal notes that this approach lowers traditional antitrust standards by shifting the burden of proof to employers and predicts heightened scrutiny of non-compete agreements going forward. Employers should review their use of such agreements to ensure compliance with evolving FTC enforcement priorities.
Read the full article here.
