The FTC's 2024 rule to ban most noncompetes is not in effect (blocked by a court in Aug 2024), and in early 2026 the agency formally shifted to case-by-case enforcement instead of a national rule after a January 2026 workshop. Enforceability now depends on state law, where four states fully ban noncompetes and Washington becomes the fifth in 2027.
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FTC drops nationwide noncompete ban; enforcement is now state-by-state
Why this matters for founders
Don't rely on a federal ban being dead to stop a former employer's noncompete, and don't assume your own noncompetes are void; review each key hire and your own agreements against the specific state's law.
Source: Foley & Lardner
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