Another year, another twist in the non-compete rollercoaster. In 2026, the Federal Trade Commission (FTC) is intensifying its actions against anti-competitive non-competition agreements. As the agency’s enforcement remains a top priority, employers should pay close attention to evolving legal standards focused on protecting worker rights and mobility.

FTC Takes Aim at Unjust Non-Compete Agreements

On January 27, 2026, the FTC held a workshop, “Moving Forward: Protecting Workers from Anticompetitive Noncompete Agreements.” While the workshop covered a variety of topics, the key takeaway was clear: the FTC’s tough stance on non-competition agreements remains in place. The meeting highlighted the commission’s strong commitment to cracking down on unlawful non-competes, especially those used to suppress worker mobility, chill wage competition, or hinder competitors’ entry into the market.

The FTC’s approach is a shift from broad rulemaking under former Chair Lina Khan to what current Chair Andrew Ferguson described as “education through enforcement.” The FTC hopes targeted enforcement actions under existing antitrust authority will have a broad deterrent effect, particularly protecting low-wage earners and healthcare professionals. Ferguson also indicated that employers subject to enforcement actions should expect the agency to litigate.

Key Workshop Takeaways

• Non-competes must be supported by real and specific business justifications. Employers cannot rely on generalized concerns about competition or retention.
• Non-competes must be narrowly tailored. The duration, geographic scope, and job-specific needs must be reasonable, narrowly tailored, and support the business justifications at issue.
• Access to proprietary information matters. In evaluating reasonableness, the FTC will consider individual workers’ specific access to the employer’s confidential and trade secret information that could materially aid or advance a competitor’s business.
• Healthcare and low-wage earners are a priority. The FTC is particularly concerned about non-competition agreements hindering the mobility of low-wage earners and healthcare workers. For healthcare workers specifically, the FTC is concerned about patient access, worker shortages in rural areas, and high barriers to entry for workers with specialty practices.
• Less restrictive alternatives matter. In evaluating non-competes, the FTC will consider whether non-solicitation restrictions, non-disclosure and confidentiality restrictions, or fixed-term contracts could address the same business concerns without unreasonably suppressing worker mobility. Non-solicitation restrictions and confidentiality restrictions are not affected by the FTC’s guidance, so long as they are not so broad that they function as “de facto” non-competes.

Action Steps for Employers

In anticipation of the FTC’s enforcement efforts, employers should:

1. Review future non-competition agreements for defensibility under federal law.
2. Eliminate “one-size-fits-all” provisions and ensure agreements are tailored to specific roles and responsibilities.
3. Assess whether less restrictive measures, such as confidentiality or non-solicitation clauses, can adequately safeguard company interests.
4. Be mindful of state law requirements regarding non-competes, including Minnesota’s prohibition on non-competes for agreements entered into on or after July 1, 2023.

Staying informed about the FTC’s ongoing efforts and adapting existing employment practices will be critical to minimizing legal risk. By focusing on legitimate business needs and considering worker mobility, employers can create enforceable agreements that align with current regulatory expectations.