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

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

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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