The FTC Withdraws Appeal Regarding Non-Compete Rule

In May 2024, the Federal Trade Commission (FTC) published a final rule prohibiting employers from entering into or enforcing non-compete clauses with most employees and requiring employers to notify employees that their non-competes would not be enforced. In response to a lawsuit filed against the FTC rule, the U.S. District Court for the Northern District of Texas issued a final ruling in August of 2024 that permanently blocked the non-compete ban for all employers nationwide. The FTC initially appealed this ruling, but on September 5, 2025, the FTC withdrew the appeal. This action leaves employers with the certainty that the federal ban on non-compete agreements will not take effect, and it allows employers to continue relying on state-level guidance regarding the enforceability of their non-compete agreements.