FTC Moves to Vacate Rule on Banning Noncompetes

In a 3-1 vote last Friday, the Federal Trade Commission (FTC) decided to dismiss its appeals against injunctions of the Commission’s noncompete ban and take steps to vacate the rule. The ban was finalized in 2024 but never took effect. FTC plans to continue targeting unlawful noncompete agreements, sending warning letters to industries where contracts are prevalent.