Companies Tackle Noncompetes With Nuance Amid FTC Legal Appeals

Companies are tailoring their noncompetes and seeking alternatives in response to state-level restrictions, even as the fate of a federal ban remains uncertain.

The Federal Trade Commission is appealing a near-total block on the ban at the Fifth Circuit but it’s not clear whether the incoming Trump administration will continue the litigation.

Some companies don’t use noncompetes, either on principle or under state prohibitions. They say other measures to protect their trade secrets and customer bases, such as nonsolicit and nondisclosure agreements, are enough.

Those using noncompetes must pay close attention to how they write the agreements, advisers say. California, ...