FTC: Request for Information Regarding Employer Noncompete Agreements (November 3, 2025)

FMI – The Food Industry Association welcomes the opportunity to comment on the Federal Trade Commission’s (FTC) Request for Information Regarding Employer Noncompete Agreements (FTC-2025-0463-0001). FMI appreciates that the RFI recognizes that non-compete agreements "can serve valid purposes in some circumstances." The use of non-compete agreements in certain cases with executive-level and highly skilled talent is a standard practice in many industries and serves to protect businesses by preventing valuable intellectual property, trade secrets, and other sensitive information from being shared with a competitor.

Consistent with governing state law, many of FMI’s members use non-compete agreements and do so almost exclusively with executive-level and highly skilled talent. In FMI’s experience, these agreements provide vital protection for companies’ sensitive business information and trade secrets. Advanced research and development is a vital part of the food industry and FMI members’ businesses. FMI’s members are on the cutting edge of developing technology and business strategies that help sustain an efficient food supply chain in the United States, and non-compete agreements are essential in facilitating that work. Non-compete agreements also promote mutually beneficial employment arrangements between FMI members and their employees and facilitate corporate transactions that help FMI members to grow and expand their operations.