Current State of Restrictive Covenants in Employment: Impact of a New Administration, Mitigating Risk of Noncompliance
FTC, NLRB, State Regulation, Drafting Considerations for Employers

Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Employment and Workers Comp
- event Date
Wednesday, July 16, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will examine the current state of restrictive covenant regulation under the new administration and the challenges to employers where the federal government is pulling back on regulation while certain states institute stricter laws. The panel will provide an overview of the actions taken to date by the new administration and provide insights into potential future action. The panel will also examine notable state regulations related to restrictive covenants and offer best practices for using restrictive covenants in employment in this evolving regulatory landscape.
Faculty

Mr. Prokott advises businesses regarding complex workplace matters. He represents employers of all sizes, including multinational public and private companies, established and emerging private businesses, and nonprofit organizations. Mr. Prokott advises employers on: hiring practices, including issues related to non-discrimination, non-competition, pre-employment testing, background checks and state law compliance; reviewing and drafting offer-of-employment letters and employee handbooks; preparing executive and sales compensation agreements; preparing non-competition, non-solicitation and confidentiality agreements, and advising on the enforceability of these types of agreements; and best practices for managing and implementing employee restructurings and voluntary and involuntary workforce reductions, including release requirements under the Age Discrimination in Employment Act and Older Workers Benefits Protection Act, and compliance with the Worker Adjustment and Retraining Notification Act, among other matters.

Mr. Pockers represents clients nationally in complex commercial litigation with a primary focus on non-compete, trade secrets and unfair competition cases. He is the founder and lead editor of the firm’s Non-Compete and Trade Secrets blog. Mr. Pockers has been lead trial counsel in a number of key cases in this area of the law, including The Valspar Corp. v. Van Kuren, 2012 U.S. Dist. LEXIS 111862 (W.D. Pa. Aug. 9, 2012), in which he obtained an injunction on behalf of The Valspar Corporation prohibiting a former manager who had no non-compete or other post-employment restrictive covenant from taking a competitive position, only the second U.S. District Court decision (the celebrated Bimbo Bakeries case being the first) decided under Pennsylvania law enjoining employment of an individual who had no non-compete or other post-employment restrictive covenant. Mr. Pockers also has significant experience handling a variety of other types of complex commercial cases, including real estate and other business disputes, securities litigation with an emphasis on disputes between customers and broker/dealers and/or registered representatives, litigation involving the licensing and implementation of software, and mass tort products liability litigation. He has tried more than 35 cases in federal, state and arbitration forums.
Description
The new administration has indicated early on that it will be taking a more pro-business approach when it comes to restrictive covenants than the preceding administration as demonstrated by the FTC's motions to stay its appeals of the rulings blocking its 2024 noncompete rule and the rescission of key memos by the former NLRB General Counsel related to restrictive covenants.
The federal government recently filed motions to stay its appeals in the Fifth and Eleventh Circuits with Chairman Andrew Ferguson explaining that the Commission "needs to decide whether it's a good idea" and "in the public interest to continue defending this rule." Still, Ferguson has questioned whether unreasonable and broad noncompete agreements might still harm competition in labor markets and has launched a task force that will focus on enforcing federal antitrust laws to protect competition in labor markets, including targeting unreasonable noncompete agreements and no-poach and non-solicitation agreements.
In addition to the action being taken by the FTC, the NLRB General Counsel William Cowen rescinded several memos issued by former NLRB General Counsel Jennifer Abruzzo, including those related to restrictive covenants: (1) GC 23-05 that sought to expand the Board's McLaren Macomb decision that ruled most standard confidentiality and non-disparagement clauses in severance agreements are unlawful under the NLRA; (2) GC 23-08 that found that noncompete agreements generally violate the NLRA with limited exceptions; and (3) GC 25-01 that sought to expand financial remedies for employees subject to noncompete and "stay or pay" agreements.
With such action, employers are left wondering whether and how to use restrictive covenants to govern employee relationships, especially since more states are introducing and/or passing regulations limiting restrictive covenant use. Counsel should understand how to help their employer clients navigate this uncertainty.
Listen as our expert panel provides a comprehensive overview of the state of restrictive covenant regulation under the new administration and offers best practices for helping employers minimize risk of noncompliance.
Outline
I. Introduction
A. Overview of the evolution of restrictive covenant regulation
B.   Review of prior administration's focus on restrictive covenants
II. Restrictive covenants in employment under a new administration
A. FTC
B. NLRB
C. Other
III. Notable state laws governing restrictive covenants
IV. Best practices for using restrictive covenants in employment agreements
V. Practitioner takeaways
Benefits
The panel will review these and other important issues:
- What steps has the new administration taken to roll back restrictive covenant regulation as compared to the prior administration?
- How has the FTC signaled that it still has restrictive covenants in its sights?
- What may be the potential impact of the new administration on the use of restrictive covenants in employment relationships?
- How are the states stepping up their regulation of restrictive covenants? Of what notable state laws should counsel and employer clients be aware?
- What are best practices for counsel and their employer clients when including restrictive covenants in employment agreements?
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