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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteNo—the FTC’s nationwide noncompete rule is not in effect or enforceable. The agency adopted the rule in 2024, but a federal court stopped its enforcement, the FTC later acceded to vacatur, and the agency removed the rule from the federal regulations in February 2026. That does not determine whether a particular agreement is enforceable under state law or on its specific facts.
Is the FTC noncompete ban in effect?
No. The FTC’s rule-status page states: “The Noncompete Rule is not in effect and it is not enforceable.” FTC Noncompete Rule status and history.
The FTC’s 2024 rule would have imposed a broad nationwide restriction on noncompete clauses. It did not become an enforceable federal ban. The FTC’s later removal of the regulation from 16 CFR part 910 conformed the agency’s rules to federal court decisions; it did not reinstate the ban.
What happened to the 2024 rule?
- April 23, 2024: The FTC announced its final rule. As designed, it would have barred new noncompetes and treated existing agreements differently depending on whether a worker was a senior executive. These were features of the proposed rule, not current requirements. FTC announcement of the 2024 rule.
- August 20, 2024: A district court issued an order stopping the FTC from enforcing the rule, according to the FTC’s rule history. FTC Noncompete Rule status and history.
- September 5, 2025: The FTC announced that it had taken steps to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC, and to accede to vacatur. The Commission vote was 3–1. FTC announcement on acceding to vacatur.
- February 12, 2026: The FTC’s official record described a final rule removing the Non-Compete Rule from 16 CFR part 910 to conform it to federal court decisions. FTC record of the 2026 rule removal.
What does this mean for an existing noncompete?
The federal rule does not itself determine whether your particular agreement is enforceable now. That question may depend on the state or other jurisdiction, the agreement’s wording, and the circumstances. The FTC’s rule-status materials do not provide a state-by-state answer, so do not assume either that every noncompete is invalid or that every one is enforceable.
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If an agreement affects a job change, starting a business, or other financial decision, seek current advice from an employment lawyer familiar with the relevant jurisdiction. The FTC’s federal rule page is not a substitute for reviewing the applicable law and the agreement itself.
Can the FTC still act on noncompetes?
Yes, the FTC’s noncompete topic page lists individual enforcement matters and later activity. Those case-specific actions are distinct from the vacated nationwide rule; they do not mean the categorical 2024 ban is back in force. FTC noncompete topic page.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the rule’s impact estimates do—and do not—show
When announcing the 2024 rule, the FTC estimated it could lead to more than 8,500 additional new businesses each year. That was a forecast of the rule’s anticipated effect, not a measured outcome. Because the rule did not take effect and was later removed, the figure should not be read as a realized result. FTC announcement of the 2024 rule.
In a September 2025 statement, FTC Chair Andrew N. Ferguson and Commissioner Melissa Holyoak characterized the rule as reaching “thirty million existing private contracts.” That is their description of the rule’s potential reach, not an independently verified current count of agreements. Ferguson–Holyoak statement.
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