non-compete agreements aren’t illegal after all

Last year, the federal government was poised to ban non-compete agreements for most U.S. workers, saying they stifle wages. However, right before that change in the law was supposed to take effect in September 2023, a judge in Texas blocked the rule, saying the agency lacked the authority to issue it, and it’s been in limbo ever since.

Last Friday, the FTC announced it will end its appeals of the case, which ends all the remaining litigation over the rule … and means the proposed noncompete rule is null and void.

Non-competes still remain banned in California, North Dakota, and Oklahoma, and 11 more states and Washington, D.C. prohibit them for hourly wage workers or workers below a salary threshold. Targeted cases could also challenge specific noncompetes — but the federal protection a lot of people were excited to get is now dead.

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