No. The FTC’s 2024 rule banning most workplace noncompetes never took effect and is not enforceable. A federal court blocked it nationwide before its scheduled start date, the FTC dropped its appeals in 2025, and the agency removed the rule from federal regulations in 2026. That does not decide whether a particular noncompete is valid: state law and the facts of the agreement may still matter.
What happened to the FTC’s noncompete rule?
| Date | Action |
|---|---|
| April 23, 2024 | The FTC announced a final rule that would generally have prohibited employers from entering into noncompetes with workers. FTC rule page |
| August 20, 2024 | A federal district court in Texas blocked enforcement nationwide. The rule had been scheduled to take effect September 4, 2024, but the court order came first. FTC noncompete topic page |
| September 5, 2025 | The FTC announced that it would dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and accede to vacatur. The Commission voted 3-1. FTC announcement |
| February 12, 2026 | The FTC issued a final rule removing the regulation from 16 CFR part 910 to conform the Code of Federal Regulations to the court decisions. Regulatory agenda, 91 FR 53156 |
The FTC’s current rule page states: “The Noncompete Rule is not in effect and it is not enforceable.” FTC rule page
What the blocked rule would have done
These provisions describe the rule as adopted in 2024; they never became operative. The rule would have treated entering into a noncompete as an unfair method of competition under Section 5 of the FTC Act.
- New agreements: Employers would generally have been prohibited from entering into noncompetes with any worker, including senior executives.
- Existing agreements: Noncompetes for senior executives could have remained in force. Existing noncompetes for other workers would have become unenforceable after the effective date, and employers would have had to notify affected workers.
- Who counted as a worker: The definition would have extended beyond employees to include independent contractors, interns, volunteers, apprentices, and sole proprietors providing services.
The FTC said in 2024 that an estimated 30 million workers—nearly one in five Americans—were subject to a noncompete. It also projected that the rule could increase new-business formation, worker earnings, and patenting, and lower health care costs. Those were agency projections about a rule that was blocked before taking effect, not measured results. FTC’s April 23, 2024 announcement
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What the block means for workers and employers
The federal rule is not a nationwide ban
The 2024 rule does not provide a current, blanket federal prohibition on noncompetes. Its removal from 16 CFR part 910 reflects the court decisions and the FTC’s decision to end its appeals.
It does not settle every noncompete dispute
The rule’s end does not establish that every noncompete is enforceable. State law and contract-specific facts can affect the answer, and this federal status update cannot determine an individual’s rights under a particular agreement. The sources cited here do not provide a state-by-state survey, so check the law that applies where you work and consider getting advice from a qualified employment attorney before relying on or challenging a clause.
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The FTC can still pursue individual cases
The FTC continues to address noncompetes through case-specific enforcement. Its topic page lists later enforcement activity, including a 2026 action concerning Rollins. The end of the broad rule therefore should not be read as an end to all FTC scrutiny of noncompete practices. FTC noncompete topic page
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