In 2024, the Federal Trade Commission (FTC) announced a ban on almost all employee noncompetition agreements. Lawsuits immediately followed to prevent that rule from taking effect.
Two federal district courts entered orders to prevent the FTC from enforcing the rule. The FTC appealed those orders, and the parties submitted their arguments to the appellate courts. But then in March 2025, the FTC asked the appellate courts to delay any decision for 120 days. Its reasoning for these delays was that it wanted “additional time … to determine whether the Commission should reconsider its defense of the rule.” In July 2025, the FTC requested another 60-day delay in the cases. It appears that it will be at least September 2025 before we learn whether the FTC wants its appeals to proceed.
In the meantime, the various states’ laws on employee noncompetition agreements still apply. In most states that means these agreements are still enforceable, at least to some degree.
