FTC

FTC Abandons Nationwide Non-Compete Ban, But Affirms Ability to Pursue Case-Specific Enforcement Actions

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On September 5, 2025, the Federal Trade Commission (FTC) voluntarily dismissed its appeal of court decisions that had blocked its efforts to implement a nationwide ban on non-competition agreements. This voluntary dismissal was largely anticipated in light of the change in administration and consequent leadership change at the FTC. The FTC’s proposed ban had been introduced in April 2024 and sought to eliminate most non-compete provisions in employment contracts across the country. That FTC action generated substantial public discourse and was met with swift legal challenges. Courts in Texas and Florida ultimately ruled against the ban’s implementation. The Texas federal …

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Recent Changes in Leadership at FTC and NLRB Impact Federal Regulation of Non-Compete Agreements

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The change in presidential administrations has resulted in changes in leadership at the Federal Trade Commission (FTC) and National Labor Relations Board (NLRB). These changes have potential implications with respect to enforcement of non-compete agreements at the federal level. At the FTC, Andrew Ferguson has replaced the prior FTC Chair, Lina Khan. Under Ms. Khan’s leadership, the FTC had issued a Noncompete Rule that effectively banned most noncompete agreements with employees. In August 2024, that Rule was blocked by a court in the Northern District of Texas before it went into effect. The FTC filed an appeal of that decision, …

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Checking In On The FTC’s Non-Compete “Ban”

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On October 18, 2024, the Federal Trade Commission (FTC) initiated an appeal with the U.S. Court of Appeals for the Fifth Circuit, contesting the ruling issued by a Texas district court on August 20 in Ryan, LLC v. FTC, which blocked the FTC’s rule banning non-competes. As it stands, however, the Texas district court’s decision blocking the FTC’s rule from going into effect remains operative. A timeline for that appeal process has not yet been set. In the meantime, the result of the recent Presidential election may mean a change in leadership at the FTC. It is possible (even likely) …

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FTC Rule Banning Non-Competes Vacated By Texas Court

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The Federal Trade Commission (FTC) Rule banning nearly all post-employment non-compete agreements has been vacated, so will not be going into effect on September 4, 2024. On August 20, 2024, the U.S District Court for the Northern District of Texas in Ryan, LLC v. FTC issued an Order on a Motion for Summary Judgment in which the Court vacated the FTC Rule. Specifically, the Court states: “The Court sets aside the Non-Compete Rule. Consequently, the Rule shall not be enforced or otherwise take effect on its effective date of September 4, 2024 or thereafter.” This decision provides welcome clarity in …

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