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Noncompete Rule
The FTC's page on its noncompete ban, which a court blocked and the agency later dropped
Why it’s worth your time
If you've heard that noncompetes were banned nationwide, the Federal Trade Commission's noncompete page is the place to check. A few minutes here can keep you from planning a move around a rule that never took effect.
Are noncompetes still enforceable
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How to get it
Opens their site. We don’t copy it here; we’d rather they get the read.
- Read the status note.
It's the paragraph under Rule Summary at the top: the rule isn't in effect, a district court stopped it in August 2024, and the FTC moved to dismiss its appeal in September 2025. Skim the rule text below it only if you're curious what a ban would have covered.
- Find your agreement and note the state law it names.
Look in your offer letter, employment agreement or equity documents for a noncompete clause and a governing-law line. Write down how long it lasts, what it covers and which state's law applies.
Good moments for this: before you sign an offerwhen a competitor callsbefore you resign
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Making it work for you
Every workplace is different. Here’s what to think about before you start, and what might get in the way.
Things to think about
With the federal rule gone, whether a noncompete holds up in the US generally depends on the state whose law governs it, and those rules vary a lot: some states limit or bar most noncompetes, while others enforce ones they see as reasonable in length and scope.
What might make this harder
Ask for a copy of what you signed and read the dates and scope yourself; the FTC page won't settle it. An employment lawyer in your state can tell you whether it's likely to hold.
Questions people ask
What is the FTC Noncompete Rule?
A 2024 Federal Trade Commission rule that would have banned new noncompetes for all workers and made most existing ones unenforceable, apart from some senior executives. The FTC's page says it is not in effect and not enforceable.
Are noncompetes banned in the US?
Not nationwide. The federal rule was blocked in court and never took effect, though some states limit or ban them under their own laws.
Why did the FTC drop its noncompete rule?
A federal district court found the agency lacked the authority to issue it. In September 2025 the Commission voted 3-1 to dismiss its appeals and accept that ruling.
How do I know if my noncompete is enforceable?
Start with the agreement's length, scope and governing-law line. Whether it holds usually turns on that state's rules, and a local employment lawyer can give a firmer answer.
What it says, and how it holds up
In the spring of 2024, it looked as if noncompetes were about to stop mattering for nearly every worker in the US. The FTC finalized a rule that would have banned new ones and voided most existing ones, except those held by senior executives in policy-making roles above a pay threshold. A federal district court stopped the rule in August 2024, before it took effect. The page now opens with that news, and the rule's full text sits below it as a record of what nearly happened.
The agency then changed course under new leadership. Its September 2025 press release says the Commission voted 3-1 to drop its appeals and accept the court's finding that it lacked the authority to issue the rule; Chairman Ferguson and Commissioner Holyoak had dissented on those grounds when it was issued. A Federal Register notice listed on the page, from February 2026, removes the rule.
Clauses with other names, such as limits on soliciting clients or hiring former colleagues, can also restrict what you do next, so before a move it's worth reading the whole agreement, including the parts that never use the word noncompete. This explains how things usually work; it isn't financial, tax or legal advice for your situation.
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Picked by Truest and described in our own words. The original belongs to its creator. Last updated October 9, 2026. We sell a career membership; where that’s relevant above, we say so.