Noncompetes are not dead, but they are no longer something businesses should use without careful thought. The legal landscape has changed quickly, and employers should not assume that an old form agreement is still the right tool.

The FTC’s nationwide Noncompete Rule is not currently in effect or enforceable, according to the FTC’s own rule page. That does not mean noncompetes are risk-free. It means businesses are back in a more complicated world where enforceability depends on state law, contract language, the worker’s role, the business interest being protected, and the reasonableness of the restriction.

For small businesses, the practical question is not whether every noncompete is good or bad. The question is whether the restriction actually protects something legitimate, such as confidential information, trade secrets, customer relationships, goodwill, or a purchased business interest.

Dental practices face these issues frequently. Associate dentist agreements often include noncompetes, non-solicitation provisions, non-disparagement clauses, confidentiality terms, and patient-record restrictions. A practice owner may want to protect patient relationships and staff stability. An associate dentist may need to preserve the ability to work in the community after leaving.

Overbroad restrictions can create problems for both sides. If a noncompete covers too large a geographic area, lasts too long, restricts too many activities, or is disconnected from a legitimate business interest, it may be challenged. Even if it is ultimately enforceable, the dispute can be expensive.

Many businesses should consider narrower tools. Confidentiality agreements, trade secret protections, non-solicitation provisions, patient or customer non-interference clauses, and repayment provisions for specific benefits may address the real concern without going further than necessary.

Businesses should also distinguish between employment restrictions and sale-of-business restrictions. A dentist who sells a practice and receives payment for goodwill is in a different position than an associate employee changing jobs. The legal and business analysis should reflect that difference.

In 2026, the best approach is review rather than panic. Business owners should know what their agreements say, whether the restrictions are necessary, whether they are reasonable, and whether they match current business needs.

Brenden Kelley Law reviews and drafts restrictive covenants, non-solicitation provisions, confidentiality agreements, and associate dentist agreements.

Additional legal and practical context

Noncompete law has been unsettled for years, and 2026 is no exception. The FTC’s Noncompete Rule page states that the rule is not in effect and is not enforceable after a district court stopped the FTC from enforcing it. The same FTC page notes that the agency appealed and later took steps to dismiss its Fifth Circuit appeal. See the FTC’s Noncompete Rule page.

That does not mean employers can ignore restrictive covenants. State law still matters. So does the wording of the agreement. A noncompete is only one tool. Employers often also rely on confidentiality clauses, trade secret protections, non-solicitation agreements, patient or customer non-interference provisions, repayment obligations, and agreements tied to the sale of a business.

Dental practices need to be especially thoughtful. A practice may have legitimate concerns about protecting patient relationships, referral sources, team stability, confidential business information, marketing plans, and goodwill. At the same time, overly broad restrictions can create enforceability problems and recruiting problems. An associate dentist who sees a one-sided agreement may decide not to join the practice at all.

The better approach is to tailor restrictions to the actual risk. A practice purchase agreement may justify stronger restrictions against a selling dentist who is being paid for goodwill. An associate agreement may require narrower terms tied to patient solicitation, confidential information, and a reasonable geographic scope. Hygiene, front desk, management, and clinical team agreements may call for different language altogether.

Practical takeaway

Small businesses and dental practices should not assume that every old noncompete is enforceable or that every noncompete is worthless. Review the agreement, identify what the business truly needs to protect, and consider whether narrower tools can accomplish the goal with less risk.

Sources and further reading

•            FTC Noncompete Rule

•            Federal Register - Non-Compete Clause Rule