FTC Takes On Noncompete Agreements As New State Laws Take Effect

Noncompete agreements are the focus of a new enforcement activity by the FTC this month while states continue to restrict their use. Below are key takeaways for all employers who use noncompete agreements and further background on recent developments.

Key Takeaways for Employers

• Recent Federal Trade Commission (FTC) activity reveals its strategy and pivot from rulemaking to enforcement: After court rulings shelved the 2024 Final Rule banning noncompetes nationwide and the FTC's dismissal of its appeals challenging those decisions, the agency is prioritizing case‑by‑case enforcement and public input. In September 2025 the FTC issued an administrative complaint and proposed consent order (Gateway Services), a series of letters to healthcare employers and staffing firms warning against the use of unfair or anticompetitive noncompetes, plus an RFI on employer noncompetes; the FTC also dismissed appeals of rulings against its 2024 rule.