News & Analysis as of

Section 5 Non-Compete Agreements

Parker Poe Adams & Bernstein LLP

FTC Signals Aggressive Case-by-Case Enforcement Action on Overbroad Noncompete Agreements

On January 27, 2026, the Federal Trade Commission (FTC) held a workshop entitled “Moving Forward: Protecting Workers from Anticompetitive Noncompete Agreements.” The workshop was part of the FTC’s broader efforts to highlight...more

Jackson Walker

The Non-Compete Conundrum: The Ban, The Backlash, And What’s Next

Jackson Walker on

In April of last year, the Federal Trade Commission (FTC) voted to implement its final rule prohibiting non-compete agreements in the workplace. The rule, as a practical matter, eliminated the patchwork of non-compete...more

Fisher Phillips

FTC Warns Healthcare Employers and Staffing Firms Over Noncompetes: 5 Takeaways + 5 Action Steps

Fisher Phillips on

Healthcare employers and the staffing firms who serve them should take note: federal authorities recently announced they will specifically target the use of noncompetes and other restrictive covenants in the healthcare space....more

Husch Blackwell LLP

FTC Abandons 2024 Non-Compete Rule, Signals Priority in Non-Compete Enforcement Actions

Husch Blackwell LLP on

On September 5, 2025, the Federal Trade Commission (FTC) took steps to formally end its efforts to implement a nationwide ban on non-compete agreements, agreeing to vacate the Non-Compete Clause Rule and dismiss all pending...more

Hogan Lovells

FTC sets new course for enforcement of noncompete agreements

Hogan Lovells on

On September 5, the FTC ended the nearly 18-month legal purgatory for the agency’s Non-Compete Clause Rule, voting to withdraw its appeal of a Texas District Court’s decision setting aside the Rule, and accede to the Rule’s...more

UB Greensfelder LLP

FTC Moves to Protect Workers from Anticompetitive Agreements by Issuing Action Against Gateway Services

UB Greensfelder LLP on

The Federal Trade Commission’s (FTC’s) non-compete rule may be effectively dead, but the agency’s focus on non-compete agreements is very much alive. In February, FTC Chairman Andrew Ferguson launched a Joint Labor Task Force...more

A&O Shearman

District Courts Split On Federal Trade Commission’s Non-Compete Clause Rule

A&O Shearman on

On July 23, 2024, Judge Kelley Brisbon Hodge of the United States District Court for the Eastern District of Pennsylvania denied plaintiff’s motion for a preliminary injunction seeking to enjoin the Federal Trade Commission...more

Faegre Drinker Biddle & Reath LLP

Recent Decisions in Noncompete Cases Expose Deep Divides in Opposing Visions for Antitrust Enforcement

On July 3, 2024, plaintiffs in Ryan LLC v. Federal Trade Commission won their first significant victory in their noncompete case against the Federal Trade Commission (FTC) when Judge Ada Brown of the Northern District of...more

Troutman Pepper Locke

Pennsylvania Court Denies Injunction Against FTC’s Noncompete Ban

Troutman Pepper Locke on

In direct conflict with a recent Texas court ruling, on July 23, an Eastern District of Pennsylvania court denied ATS Tree Services’ motion for a preliminary injunction to stay the effective date of the Federal Trade...more

A&O Shearman

Plaintiffs Win Preliminary Injunction Blocking The FTC’s Ban On Non-Competes

A&O Shearman on

The Court concluded that the FTC exceeded its statutory authority in promulgating the Rule, which prohibits new non-compete agreements and releases most workers from existing restrictions.  Opinion at 6, 19.  The FTC...more

WilmerHale

Antitrust Updates: The FTC's Non-Compete Rule and the Impact of Loper Bright on Federal Antitrust Enforcement

WilmerHale on

On June 28, the Supreme Court handed down its decision in Loper Bright Enterprises v. Raimondo, overruling Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. In its 1984 Chevron decision, the Court held that...more

Goodwin

Federal Court Preliminarily Enjoins Enforcement of the FTC Non-Compete Rule, but Only for the Plaintiffs: What Are the...

Goodwin on

On April 23, 2024, the Federal Trade Commission (the “FTC”) issued a rule banning most post-employment non-competition agreements (the “FTC Rule”). Since its promulgation, the FTC Rule has been subject to legal challenges....more

Hogan Lovells

Texas Federal Court grants preliminary injunction blocking FTC rule banning non-compete agreements

Hogan Lovells on

On July 3, 2024, a Texas federal judge issued a preliminary injunction postponing the September 4, 2024 effective date of the Federal Trade Commission (FTC)’s final rule banning non-compete agreements (the Non-Compete Rule)...more

Seyfarth Shaw LLP

FTC Non-Compete Ban: What You Need to Know (UPDATED)

Seyfarth Shaw LLP on

On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being...more

BakerHostetler

How FTC History Did Not Affect the FTC’s Approach to Non-Competes (but Should Have?): From the Nader Report to the Present

BakerHostetler on

On April 23, the FTC issued its much-anticipated Final Rule banning worker non-competes. The Final Rule targets the Biden administration’s goal of reducing barriers to employee mobility....more

Seyfarth Shaw LLP

Lawsuits Filed To Block FTC’s Non-Compete Ban

Seyfarth Shaw LLP on

At least three lawsuits have now been filed against the FTC to block implementation of its new rule to ban non-competes....more

Troutman Pepper Locke

Implications of the FTC’s Noncompete Ban on Financial Institutions

Troutman Pepper Locke on

There has been a great deal of press about the Federal Trade Commission’s (FTC) vote to ban employee non-competition provisions and policies. While the FTC describes the rule as a comprehensive ban, it acknowledges that the...more

Bradley Arant Boult Cummings LLP

FTC Moves to Strike Most Noncompetes: Considerations for Cannabis Companies

As Bradley previously reported, the Federal Trade Commission at the beginning of last year issued a notice of proposed rulemaking to effectively ban employee noncompete provisions as an unfair method of competition in...more

Jenner & Block

Client Alert: FTC Finalizes Near Total Ban of Noncompetes – How You Can Prepare Now

Jenner & Block on

FTC Votes in Favor of Issuing Final Rule. On April 23, 2024, the Federal Trade Commission (“FTC”) voted in favor of issuing its final rule which essentially bans all noncompetes going forward and invalidates most...more

McDermott Will & Schulte

FTC Issues Rule Banning Worker Noncompete Agreements

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule,...more

Bowditch & Dewey

New FTC Rule Imposes Sweeping Ban on Non-Compete Agreements with Workers

Bowditch & Dewey on

In January of 2023, Bowditch alerted clients that the Federal Trade Commission (“FTC”) was proposing a sweeping new rule that would ban the use of virtually all non-compete agreements and have a seismic effect on employment...more

Bradley Arant Boult Cummings LLP

Noncompetes Gone! FTC Issues Final Rule Banning Noncompete Clauses Nationwide

On April 23, 2024, the Federal Trade Commission issued a broad Final Rule that effectively bans noncompete clauses nationwide. The FTC states that noncompete clauses are an unfair method of competition and violate Section 5...more

Moore & Van Allen PLLC

The FTC Votes to Ban Non-Compete Agreements

Moore & Van Allen PLLC on

The Federal Trade Commission voted 3-2 today to approve a final rule banning non-compete agreements nationwide. The rule is slated to go into effect 120 days after its published in the Federal Register....more

White & Case LLP

Uncertainty Remains More Than One Year After the FTC Announces New “Unfair Methods of Competition” Policy

White & Case LLP on

On November 10, 2022, the Federal Trade Commission announced a significant change in how the FTC plans to enforce Section 5 of the FTC Act, which bans "unfair methods of competition in or affecting commerce." In doing so, the...more

McGuireWoods LLP

Questions Surround Federal Trade Commission’s Authority to Issue Non-Compete Clause Rule

McGuireWoods LLP on

With the public comment period coming to a close, business groups and others have made statements and submitted public comments criticizing the Federal Trade Commission’s (FTC’s) proposed rule to ban non-compete clauses as an...more

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