If you are a business owner or Entrepreneur in the United States, there is a high likelihood that you’ve heard all of the back and forth regarding the federal government’s attempt to ban noncompetes nationally, despite many scholars’ and legal practitioners viewpoints that this was beyond their authority. Finally, and after much back and forth between courts in various jurisdictions, on September 5, 2025, the FTC announced that it had voted to vacate the Final Rule, effectively ending the federal non-compete ban.
By way of background, on April 23, 2024, the Federal Trade Commission (the “FTC”) issued a final rule declaring that non-competes are anti-competitive and would be prohibited nationwide beginning September 4, 2024 (the “Final Rule”). For more on the history of what transpired thereafter as to its enforcement, read our article here.
On September 5, 2025, the FTC announced that it had voted 3-1 to dismiss its appeals in Ryan LLC and Properties of the Villages, Inc., acceding to the vacatur of the non-compete ban. The end of the nationwide ban leaves the regulation of non-competes to the states, which may pass their own legislation regulating these agreements. Although the Final Rule is no longer in effect, the FTC has indicated that it will continue to pursue individual enforcement on a case-by-case basis.
The FTC launched a public inquiry to better understand the scope, prevalence, and effects of employer non-compete agreements to gather information for “possible future enforcement actions”. Up until November 3, 2025, the public can submit comments online at: https://www.regulations.gov/document/FTC–2025–0463–0001.
It is important for both employers and employees to stay informed about any future regulatory developments. The Entrepreneur Lawyers can help employers ensure their non-compete agreements comply with current law and assist employees in understanding their obligations under existing agreements. If you would like to set up a free fifteen-minute discovery call with us, reach out via our “Contact Us” page or call our office directly at 1 (833) LAW-TELS.
Co-authors: Michelle K. Notte, Esq. and Giuliana Madonia (NSU Law, Class of 2026)
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