October 9, 2025

QUESTION:
What’s the status of the Federal Trade Commission’s non-competition rule?

ANSWER FROM HORTYSPRINGER ATTORNEY NICHOLAS CALABRESE:
In April 2024, the Federal Trade Commission (“FTC”) finalized a rule that banned most non-competition clauses nationwide.  However, federal courts in Texas and Florida issued injunctions and blocked the FTC from enforcing the rule.  The FTC appealed those rulings, but in September 2025, the FTC withdrew its appeals of the injunctions.  So, the ban is no longer in effect and the FTC is no longer trying to enforce it.  The below is from the FTC’s website:

The Noncompete Rule is not in effect and it is not enforceable.  On August 20, 2024, a district court issued an order stopping the FTC from enforcing the rule.  The FTC appealed that decision on October 18, 2024.  On September 5, 2025, the FTC took steps to dismiss its appeal in the Fifth Circuit.

If you have a quick question about this, e-mail Nick Calabrese at ncalabrese@hortyspringer.com.