This is a reminder to all employers that the Non-Compete Ban will likely face significant changes under a likely Republican-controlled FTC.

The rule was challenged in Texas, Florida, and Pennsylvania. The Pennsylvania case was voluntarily dismissed after the court sided with the FTC. A preliminary injunction was issued in Florida, preventing enforcement only for the plaintiff. In Texas, the rule was set aside nationwide. Appeals have been filed in the 5th and 11th Circuits.

Commissioner Ferguson emphasized the importance of protecting competition in labor markets, stating that some noncompete agreements may violate the Sherman Act. This means that employers should not expect the FTC to ignore overreaching agreements; even if the Non-Compete Ban is permanently blocked, the FTC can still pursue individual enforcement actions.

• The nationwide injection does not prevent case-by-case enforcement actions.

The Trump administration has decided to halt the appeals of the rulings blocking the FTC’s noncompete ban. It filed a motion to stay these appeals for 120 days, reassessing the public interest in defending the rule.

For additional information:

• FTC Announces Rule Banning Noncompetes (Press Release)
• Motion No. 24-13102

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