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

Host Tom Godar welcomes Husch Blackwell attorneys Tom O’Day and Tracey O’Brien to the podcast for a two-part discussion on employee restrictive covenants, including noncompete agreements. Our conversation kicks off with a summary of what constitutes a restrictive covenant and federal agency stances toward noncompete agreements over time. Tom, Tom, and Tracey review how the Biden administration made policy and enforced regulations severely restricting the use of noncompete agreements and describe how the second Trump administration is moving away from its predecessor’s more aggressive posture. At the same time, several state governments are moving forward with legislation restricting the use of noncompete prohibitions. Tracey summarizes state-level lawmaking during the 2025 legislative sessions, which demonstrates that states are indeed at the forefront of policymaking on restrictive covenant issues. Tracey also covers the basic differences among the states and how compliance with this emerging patchwork of state law can be challenging.In a forthcoming Part II of this discussion, our insiders will break down those state-specific issues relating to noncompetes in greater detail and provide listeners with some practical takeaways for compliance.Additional ResourcesNational Labor Relations Board, Universal Automation & Mechanical Services, 01-CA-300935 (case-closing email)