Story perspectives

FTC Vacates Non-Compete Ban, States Regain Control

9/17/2025

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Summary

Story summary

On September 5, 2025, the FTC vacated its Non-Compete Clause Rule, halting a nationwide ban on non-compete agreements.
The FTC will now address unlawful non-compete agreements on a case-by-case basis under Section 5 of the FTC Act.
States can enforce their own non-compete regulations, with some banning them entirely.
The FTC initiated enforcement against Gateway Services, Inc. for imposing non-competes on most employees.
Chairman Andrew Ferguson highlighted ongoing enforcement actions against anticompetitive non-compete agreements.

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Story summary

On September 5, 2025, the FTC vacated its Non-Compete Clause Rule, halting a nationwide ban on non-compete agreements.
The FTC will now address unlawful non-compete agreements on a case-by-case basis under Section 5 of the FTC Act.
States can enforce their own non-compete regulations, with some banning them entirely.
The FTC initiated enforcement against Gateway Services, Inc. for imposing non-competes on most employees.
Chairman Andrew Ferguson highlighted ongoing enforcement actions against anticompetitive non-compete agreements.