Last Updated on February 26, 2025

Legal Updates:

FTC Noncompete Ban Update & 2025 Antitrust Guidelines as of February 25, 2025

The FTC’s proposed noncompete ban remains blocked as the agency’s appeal of an August 2024 federal court ruling continues in the 5th Circuit. While the outcome remains uncertain, the recent 2025 Antitrust Guidelines for Business Activities Affecting Workers, issued jointly by the Department of Justice (DOJ) and FTC, suggest that noncompete agreements may still face antitrust scrutiny, even in the absence of the FTC’s rule.

The new guidelines reinforce that no-poach agreements, wage-fixing, broad non-solicitation clauses, expansive NDAs and training repayment provisions could violate antitrust laws if they restrict worker mobility and competition. Additionally, franchise no-poach agreements and exit fee provisions may now face stricter enforcement.

As regulatory focus intensifies on restrictive employment agreements, MyHRConcierge will continue to monitor developments and provide updates as they unfold.

FTC Appeals Court Ruling that Blocked Noncompete Ban as of October 18, 2024

The FTC has announced its intention to appeal a federal court decision that invalidated its proposed ban on most noncompete agreements. On October 18, 2024, the FTC filed its appeal with the U.S. Court of Appeals for the 5th Circuit, contesting an August 20, 2024 ruling from the U.S. District Court for the Northern District of Texas that rejected the agency’s noncompete rule.

As it stands, the FTC’s noncompete ban remains blocked by this district court ruling. Experts advise employers to prioritize compliance with state laws, review their restrictive covenants and consider alternatives to noncompete clauses to safeguard trade secrets.

U.S. Judge Strikes Down Ban on Noncompete Agreements as of August 20, 2024

On August 20, 2024, a federal judge in Texas barred the FTC’s noncompete rule. U.S. District Judge Ada Brown in Dallas, Texas stated that the FTC does not have the authority to ban practices that it deems as unfair methods of competition by adopting broad rules.

FTC spokesperson Victoria Graham mentioned that the agency was disappointed with the ruling, and is “seriously considering a potential appeal.” Although the decision to bar the FTC’s noncompete rule was made, the FTC can still address noncompetes on a case-by-case basis.

In This Episode:

Chris Cooley sits down with Bill Gault and Wendy Shelton of Nippes, Healy & Gault, PLLC to discuss the Federal Trade Commission’s Noncompete Rule.

Timestamps

• 1:01 – Summary of the FTC Noncompete Ruling.
• 7:56 – How does the employee notification requirement work?
• 9:49 – How to ensure you are properly enforcing the new ruling.
• 13:01 – Will this ruling be stayed and what will happen if it is stayed?
• 25:20 – State vs Federal Ban on Noncompetes.
• 30:18 – How to get in contact with MyHRConcierge and Nippes, Healy & Gault, PLLC.

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