The FTC's 2024 nationwide noncompete ban never took effect after a Texas court blocked it in Aug 2024, and in 2026 new FTC leadership dropped its appeals, leaving the rule dead. Instead the FTC is pursuing individualized enforcement, having filed 2026 complaints against Gateway Services (~1,800 workers), Adamas Amenity Services, and Rollins (18,000+ employees, settled). State laws (e.g., Tennessee's under-$70K ban and Virginia's restrictions) increasingly govern enforceability.
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FTC abandons national noncompete ban for case-by-case enforcement
Why this matters for founders
Don't rely on a blanket noncompete template; the federal ban is gone but so is the safe harbor, so tailor restrictive covenants narrowly and check the specific state laws where each employee works to avoid an FTC or state challenge.
Source: McDermott Will & Schulte
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