Restrictive Covenants in Flux: Key Developments Since Summer 2025

The Federal Trade Commission has pivoted to targeted review of restrictive covenants, significant state legislation has taken effect across multiple jurisdictions and courts have continued to display skepticism toward overbroad covenants. Partner David Schwartz and associate Sidney Morales Parodie discuss why employers should continue to monitor New York’s pending legislation, FTC enforcement actions and the growing body of case law addressing restrictive covenant enforceability.