Feds Retreat and States Advance: A Look at Restrictive Covenants under the Second Trump Administration and Trends at the State Level, Part II

Host Tom Godar welcomes Husch Blackwell attorneys Tom O’Day and Tracey O’Brien to the podcast for the second part of a two-part discussion on employee restrictive covenants, including noncompete agreements. Tom begins this timely episode by highlighting the September 10 directive from Federal Trade Commission (FTC) Chair Andrew Ferguson. The FTC is still in the business of policing noncompete agreements, as it issued correspondence to several healthcare employers and staffing firms suggesting that they “conduct a comprehensive review of their employment agreements—including any non-competes or other restrictive agreements—to ensure they are appropriately tailored and comply with the law.” Our discussion then pivots to look at the state regulatory frameworks in place relating to non-competes in greater detail. These state-level requirements—which can vary greatly from state to state—must play an important role in how employers draft their restrictive covenants. Tracey outlines how more states are prohibiting non-competes for those receiving lower compensation and that states often have specific provisions directed at healthcare professionals and providers. The conversation wraps up with some practical tips to consider for drafting employee agreements and some common pitfalls to avoid. Don’t miss this informative episode that touches on one of the hottest areas of labor and employment law.