September 05, 2025
FTC Votes 3-1 to Dismiss Non-Compete Rule Appeal
The day after announcing a request for information from the public on employers’ use of noncompete agreements, the FTC voted to withdraw the appeal it filed during the Biden administration. Here’s a quick recap.
You may recall last year the FTC issued a final rule that would have effectively banned nearly all noncompete agreements across the nation. The rule was scheduled to take effect September 4, 2024. Just 15 days before the effective date, a district court ruled the FTC exceeded its authority and blocked implementation. The FTC then filed an appeal.
Today, the FTC announced that it withdrew that appeal. What I find interesting (and tiring) is the political barbs and snipes in the statements of the Commissioners who concur, as well as dissent. We really can do without all that spiteful rhetoric. I wish we would.
That aside, if you have not already done so, check out the FTC’s request for information. Submit your responses to some or all of the questions. Our feedback, regardless of whether we support, oppose, in whole, or in part, the use of noncompete agreements will help shape the public policy that will impact employers, employees, competitors, contractors, and more.
