Story perspectives

Trump Administration Drops Defense of Controversial Noncompete Rule

9/9/2025

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Summary

Story summary

On September 5, 2025, President Trump's administration abandoned the legal defense of a Biden-era noncompete agreement rule.
The U.S. Justice Department moved to dismiss appeals related to the FTC's 2024 rule on these agreements.
Critics, including Republicans and business groups, claim the rule restricts worker mobility and lowers wages.
The FTC reported that over 20% of U.S. workers have signed noncompete agreements.
The FTC recently targeted a pet cremation business for enforcing extensive noncompete agreements.

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Story summary

On September 5, 2025, President Trump's administration abandoned the legal defense of a Biden-era noncompete agreement rule.
The U.S. Justice Department moved to dismiss appeals related to the FTC's 2024 rule on these agreements.
Critics, including Republicans and business groups, claim the rule restricts worker mobility and lowers wages.
The FTC reported that over 20% of U.S. workers have signed noncompete agreements.
The FTC recently targeted a pet cremation business for enforcing extensive noncompete agreements.