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FTC cracks down on employee non-compete agreements: What employers need to know

By Kelsey Gee on May 8, 2026

Employers hoping the new administration would scale back scrutiny of employee non-compete agreements may need to reconsider. The Federal Trade Commission (FTC) continues to aggressively challenge non-compete agreements under Section 5 of the FTC Act, as shown by its recent consent order with Rollins, Inc., the parent company of Orkin, HomeTeam and Critter Control. The FTC alleges that broad non-compete agreements restrict employee mobility and suppress competition, particularly for non-executive workers. The Rollins case provides an important warning for employers that use non-compete agreements, restrictive covenants or post-employment restrictions and offers insight into how the FTC may continue enforcing federal non-compete rules despite ongoing legal challenges to a nationwide non-compete ban.

FTC’s non-compete ban blocked by Texas federal judge

By Kelsey Gee & Porter Wright on August 22, 2024

The United States District Court for the Northern District of Texas issued an order blocking the Federal Trade Commission’s (FTC) non-compete ban from taking effect on Aug. 20, 2024. In Ryan LLC v. Federal Trade Commission, 2:24-cv-986, Plaintiffs successfully argued that the FTC exceeded its statutory authority in propounding a nationwide ban on non-compete agreements. Originally set to take effect on Sept. 4, 2024, the ban—which would have voided millions of employment agreements—has now been paused as a result of the decision.

Washington, DC, USA- January 12, 2020: The entrance of The Federal Trade Commission (FTC) in Washington DC; FTC is an independent agency of the United States government.

Answers to common questions about the FTC’s non-compete ban: What’s next?

By Porter Wright on May 2, 2024

The dust is still settling after the U.S. Federal Trade Commission (FTC) issued its long anticipated final Rule on Tuesday, April 23 banning most non-compete agreements in the employment context. Although the effectiveness of the Rule is likely to be delayed, potentially for years, by court challenges, employers are understandably jittery about their existing non-compete agreements and other restrictive covenants. Here with answers to some of the most commonly asked questions are Porter Wright employment attorneys Jennifer Huelskamp and Nicole Mayo.

FTC announces proposed rule prohibiting non-compete agreements

By Porter Wright on January 9, 2023

On Jan. 5, 2023, the Federal Trade Commission (FTC) announced a slate of proposed rulemaking. Of interest to employers in particular is a proposed rule that would completely ban the use of non-competition or non-compete agreements, which prevent employees from working for a competitor or starting a competing business. Typically, these agreements often last months or years and are limited to a certain geographic scope. The FTC noted that it believes non-compete agreements often have the effect of lowering workers’ wages.