Story perspectives

Trump Administration Dismisses Biden's Noncompete Agreement Defense

9/7/2025

29 5

Summary

Story summary

On September 5, 2025, the Trump administration abandoned the legal defense of a Biden-era noncompete agreement rule.
The U.S. Justice Department moved to dismiss appeals against rulings that invalidated the 2024 FTC rule.
The FTC's action against Gateway Services raises ongoing concerns about noncompete agreements.
Gateway's policy impacted approximately 1,800 employees, enforcing 12-month noncompete agreements.
The FTC's proposed Consent Order requires Gateway to stop enforcing these agreements for most employees. Public comments are open for 30 days before finalization.

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Story summary

On September 5, 2025, the Trump administration abandoned the legal defense of a Biden-era noncompete agreement rule.
The U.S. Justice Department moved to dismiss appeals against rulings that invalidated the 2024 FTC rule.
The FTC's action against Gateway Services raises ongoing concerns about noncompete agreements.
Gateway's policy impacted approximately 1,800 employees, enforcing 12-month noncompete agreements.
The FTC's proposed Consent Order requires Gateway to stop enforcing these agreements for most employees. Public comments are open for 30 days before finalization.