The FTC just made clear that while the nationwide noncompete ban is dead, the agency is not backing down. Employers, particularly in healthcare, are officially on notice. Continue reading
It promised freedom, delivered litigation, and left us with… state law. Continue reading
The Federal Trade Commission isn’t finished with noncompetes. It is gathering information to understand when these agreements cause real harm and when they may serve legitimate business purposes. Case in point: its latest enforcement action against an employer that allegedly relied on broad, boilerplate restrictions. Continue reading
Most people didn’t connect the dots between last week’s Supreme Court decision in Trump v. CASA and the FTC’s ban on noncompetes.
But maybe they should.
The Court’s ruling didn’t mention employment law. It didn’t say a word about the FTC. But it did take a wrecking ball to the kind of court order that’s currently keeping the FTC’s rule on ice. And that could matter—eventually. Continue reading
Noncompetes are under pressure. Federal regulators have wanted to ban them. States like California, Minnesota, and Oklahoma already have. And even where they remain technically legal, courts are increasingly skeptical—especially when the restrictions go further than necessary. Continue reading
As Tom Petty once sang, “The waiting is the hardest part.” Employers waiting on the uncertain fate of the Federal Trade Commission’s non-compete rule can relate. With the initial sweeping ban announced in 2024 and legal challenges that followed, many businesses have been left wondering how to structure their workforce policies. Now, recent developments suggest that the FTC may be rethinking its approach, offering some clarity—though not yet certainty.
The FTC has recently taken steps to address non-compete agreements, a long-debated issue in the job market. In a memo dated February 26, 2025, FTC Chairman Andrew N. Ferguson announced the creation of a Joint Labor Task Force to look into unfair labor practices, with non-compete agreements highlighted as a key focus. The memo states that non-compete agreements can impose unnecessary, burdensome restrictions on workers, limiting their ability to switch jobs and negotiate higher wages. The task force is charged with investigating these agreements, sharing research on their impact, and recommending regulatory or legislative actions to address abusive practices.
Yesterday, the Federal Trade Commission announced that it had ordered a building services contractor to stop enforcing a no-hire agreement. The agreement purportedly prohibited building owners and managers from hiring the contractor’s employees.
On Friday afternoon, the Federal Trade Commission notified a federal judge in Texas who had previously entered a nationwide injunction against its sweeping noncompete ban that the agency would appeal her decision to the Fifth Circuit Court of Appeals. Continue reading
Yesterday, the Federal Trade Commission filed a notice of appeal with the United States District Court for the Middle District of Florida, signifying that it will ask the Eleventh Circuit Court of Appeals to overturn a trial judge’s August 15 decision to enjoin enforcement of its sweeping noncompete ban.
Should this concern employers? I’ll give you three reasons why it shouldn’t.
The Federal Trade Commission, the architects of the sweeping noncompete ban that a federal judge in Texas set aside last month, told a federal judge in Pennsylvania yesterday that an appeal of the Texas decision “would likely take months to fully brief and could take a year or longer until a final decision.” Continue reading
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