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ARTICLE · 14 JULY 2026

Noncompete Agreements In 2026: A Federal And State Overview

Foley & Lardner LLP
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Amir El-Aswad is a legal professional based in Chicago, specializing in litigation support and dispute resolution. His practice focuses on providing strategic counsel to clients navigating complex legal challenges in modern business environments.

United StatesLitigation, Mediation & Arbitration
Amir E. El-Aswad
Amir E. El-Aswad
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Noncompete agreements remain one of the most contested areas of employment law in the United States. With federal efforts to ban noncompetes stalled and a patchwork of state laws expanding rapidly, employers need a clear understanding of the current landscape. This post provides an overview of the current status of noncompete law at both the federal and state levels.

Federal Overview: The Current Landscape

The FTC’s 2024 Rulemaking and Its Demise

The Federal Trade Commission’s (FTC) effort to ban noncompetes nationwide began in April 2024, when it issued a final rule broadly prohibiting them. Opponents quickly sued, and in August 2024 a federal court in Texas blocked the FTC from enforcing the rule nationwide. The agency appealed at first but, under Chair Andrew Ferguson, withdrew that appeal in September 2025, bringing the FTC’s nationwide ban effort to a close.

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