---
title: "FTC Non-compete Rule Dismissed | 2025 Case-by-Case Enforcement"
description: "The FTC has voluntarily dismissed its appeal of the non-compete ban, shifting to case-by-case enforcement. Learn about the \"reasonableness inquiry,\" state law trends in Florida and Kansas, and strategic alternatives like garden leave and retention bonuses."
url: "https://wimlaw.com/publications/newsletters/trump-non-compete-ftc"
date: "2026-06-03T03:00:41+00:00"
language: "en-US"
---

#  Trump No Longer to Defend Worker Non-compete FTC Rule, but FTC Issues Warnings about Non-competes

Written on October 31, 2025.

*Tag(s):* [Anti-Trust](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=44:anti-trust), [FTC (Federal Trade Commission)](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=67:ftc), [Non-Compete](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=74:non-compete), [October 2025 Newsletter](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=197:october-2025-newsletter), [Administrative Law](https://wimlaw.com/index.php?option=com_tags&view=tag&id%5B0%5D=198:administrative-law)

During the Biden presidency, the Federal Trade Commission (FTC) adopted a non-compete rule in 2024 that would have barred the use of most non-compete contracts. Former FTC Chair Lina Khan considered the non-compete ban was within the FTC’s mandate to prevent the use of unfair methods of competition. The rule was later challenged by the U.S. Chamber of Commerce and others who argued the FTC lacked Congressional authorization to adopt the rule. A district court judge set aside the rule, and the FTC appealed the decision to the U.S. Court of Appeals for the Fifth Circuit. In September of this year, the FTC moved to voluntarily dismiss the appeal. Ryan v. FTC, 24-10951 (5th Cir. 9/5/25).

The FTC thereafter, however, issued letters to various entities indicating it is increasing its focus on employers’ non–compete agreements to ensure contracts comply with anti-trust laws, with initial letters being primarily to undisclosed healthcare employers and staffing companies. Those included warnings that the agency will “investigate unfair methods of competition, including non-compete agreements that are unjustified, overbroad, or otherwise unfair or anti-competitive.” FTC Chairman Andrew Ferguson also said in a public statement that, despite the agency’s withdrawal of support for the previous administration’s non-compete ban, the FTC will continue to enforce “anti-trust laws aggressively against non-compete agreements.” Thus, the FTC is shifting away from broad rulemaking and toward case-by-case enforcement. Ferguson stated that the FTC would generally apply the common law reasonableness inquiry, “which asks whether the restriction is no greater than necessary to protect the employer’s legitimate interests, and balances those interests against the hardship inflicted on the employee and any potential injury to the public.”

In general, non-compete agreements remain governed by state law. There is a trend among the states to limit non-competes but not outlaw them altogether. At least two states, however, Florida and Kansas, recently strengthened the enforceability of non-competes. A few other states totally ban non-competes. Different state laws create concerns for employers as such agreements may be lawful in their own state but invalid in a neighboring jurisdiction. Some employers try to get around these problems by incorporating choice-of-law rules in their non-compete agreements and/or jurisdictional provisions indicating states where such agreements are to be litigated. While these type provisions can help determine which state’s non-compete laws govern disputes and where litigation must occur, there are still limits on such provisions as they usually have to have some connection to the parties and not offend the public policy of applicable jurisdictions. A few recent cases illustrate unusual situations where employees have actually moved to certain states supposedly to keep their non-compete agreements from being enforceable. A related issue is that an employee may file a declaratory judgment suit in a more favorable state in an effort to head off an adverse ruling in another state with a less favorable forum.

Some employers are considering as alternatives stronger trade secret protections and compensation changes and alternative arrangements, including garden leave arrangements, repayment agreements, retention bonuses or longer vesting periods for long-term awards.

This article is part of our October 2025 Newsletter.

[View the newsletter online](https://wimlaw.com/tags/october-2025-newsletter)[
  ](https://wimlaw.com/contact)[Download the newsletter as a PDF](https://wimlaw.com/images/2025/11/2025-10-newsletter.pdf)

- [](https://x.com/intent/post?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Ftrump-non-compete-ftc.md&text=)
- [](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Ftrump-non-compete-ftc.md)
- [](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Ftrump-non-compete-ftc.md)
- [](mailto:?subject=Trump%20No%20Longer%20to%20Defend%20Worker%20Non-compete%20FTC%20Rule%2C%20but%20FTC%20Issues%20Warnings%20about%20Non-competes)

##  Related Content

[ ![journal notebook](https://wimlaw.com/media/yootheme/cache/53/jan-kahanek-g3O5ZtRk2E4-unsplash-53b1d852.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1575:nlrb-employer-rule&catid=53)

###  [Updates on NLRB Joint Employer Rule](https://wimlaw.com/index.php?option=com_content&view=article&id=1575:nlrb-employer-rule&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1575:nlrb-employer-rule&catid=53)

[ ![dc](https://wimlaw.com/media/yootheme/cache/cf/march-2026-webinar-cf9643db.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1562:reining-state-scotus-employers&catid=221)

###  [Reining In the Administrative State: What the Supreme Court Has Been Up To, and Why it Matters for Employers](https://wimlaw.com/index.php?option=com_content&view=article&id=1562:reining-state-scotus-employers&catid=221)

[Webinars: Employment Law "Hot Topics"](https://wimlaw.com/index.php?option=com_content&view=category&id=221)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1562:reining-state-scotus-employers&catid=221)

[ ![scales of justice](https://wimlaw.com/media/yootheme/cache/38/sasun-bughdaryan-zbQ5UaREHx4-unsplash-3898be63.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1540:abandonment-impact-discrimination-eeoc&catid=53)

###  [Effect of Administration’s Abandonment of Disparate Impact in the Area of Discrimination Continues to Be Felt](https://wimlaw.com/index.php?option=com_content&view=article&id=1540:abandonment-impact-discrimination-eeoc&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1540:abandonment-impact-discrimination-eeoc&catid=53)

##  Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

##  Recent Content

 [ Employment Law Newsletter: A Monthly Report On Labor Law Issues ](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

 [ ![ai, human reach out](https://wimlaw.com/media/yootheme/cache/f1/igor-omilaev-FHgWFzDDAOs-unsplash-f12346e8.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)###  [FCRA Litigation Challenges Employers’ Use of AI Hiring Platforms](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

A January 20, 2026, class action filed against Eightfold AI, Inc. in California is sending shockwaves through the employer and AI community…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)

 [ ![danger sign, skull](https://wimlaw.com/media/yootheme/cache/01/mikael-seegen-jX6WXNkvsPs-unsplash-01c1ebef.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)###  [The Dangers of Employers Using AI Research Tools as to Discovery Requests from Plaintiffs](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

A second “bombshell” affecting HR pertaining to AI is a federal court ruling in New York, that a defendant’s use of AI in researching and p…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)

 [ ![CHAT GPT](https://wimlaw.com/media/yootheme/cache/64/emiliano-vittoriosi-fvxNerA8uk0-unsplash-64a16be4.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)###  [Two Subsequent Cases Protect Defendant’s Use of AI as Subject to Work-product Protection](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

Soon after the deciding of the above-discussed case on February 17, 2026, in U.S. v. Heppner, a criminal case in the District Court for the…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)

 [ ![avoid, wave away](https://wimlaw.com/media/yootheme/cache/6f/priscilla-du-preez-NQTphr4Pr60-unsplash-6fb4df83.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)###  [Is There Anything an Employer Can Do to Avoid Waiving Privileges in Using AI Research Tools?](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

There are no easy answers to the above question, but some general observations will nevertheless be made. First, the New York district cou…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)

 [ ![ai visualization](https://wimlaw.com/media/yootheme/cache/45/milad-fakurian-5yWtM3M3JKM-unsplash-45306e6d.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)###  [Suggestions on Use of AI](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

[Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53)

Perhaps the starting point is to look at the type of AI platforms generally available. At a recent conference about AI use for HR, speaker…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)

 [ ![june 2026 legal immigration webinar promo graphic](https://wimlaw.com/media/yootheme/cache/45/june-2026-webinar-immigration-453d45bc.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)###  [Worksite Enforcement and TPS and Parole Status Update](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)

[Webinars: Employment Law "Hot Topics"](https://wimlaw.com/index.php?option=com_content&view=category&id=221)

The webinar will cover how to deal with a worksite enforcement action and various types of immigration enforcement activities. The webinar…

[Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)

### Additional Legal Resources

[### Newsletter

Explore

 ](https://wimlaw.com/publications/newsletters)

[### Books

Explore

 ](https://wimlaw.com/publications/books)

[### Alerts

Explore

 ](https://wimlaw.com/alerts)

[### Articles

Explore

 ](https://wimlaw.com/articles)

[### Audits

Explore

 ](https://wimlaw.com/audits)

[### Events

Explore

 ](https://wimlaw.com/events)

## Schema

```json
{ "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://wimlaw.com" }, { "@type": "ListItem", "position": 2, "name": "Publications", "item": "https://wimlaw.com/publications" }, { "@type": "ListItem", "position": 3, "name": "Newsletters", "item": "https://wimlaw.com/publications/newsletters" }, { "@type": "ListItem", "position": 4, "name": "Trump No Longer to Defend Worker Non-compete FTC Rule, but FTC Issues Warnings about Non-competes", "item": "https://wimlaw.com/publications/newsletters/trump-non-compete-ftc" } ] }
```