The legal landscape for non-compete agreements in the U.S. continues to shift, driven by increased regulatory scrutiny and significant state-level reforms. Developments over the past few months, including an aggressive Federal Trade Commission (FTC) enforcement action and new legislation in Washington, Virginia, and Tennessee, underscore a clear trend: broad, “one-size-fits-all” non-compete agreements should be permanently shelved.
On April 15, 2026, the FTC issued an order barring Rollins, Inc. (a major pest-control company) from entering into or enforcing non-compete agreements for 10 years. The FTC found that Rollins imposed sweeping non-compete restrictions across its workforce, including on lower-wage technicians and customer services representatives who lacked access to confidential or proprietary information. Rollins’ agreements prohibited employees from working in the pest control industry within a 75-mile radius for two years after their employment ended.
The FTC also criticized Rollins’ aggressive enforcement practices, which included lawsuits and cease-and-desist letters that discouraged former employees from pursuing competitive work or starting their own businesses. According to the FTC, these practices stifled general competition, restricted worker mobility, and contributed to lower wages and diminished working conditions.
Notably, the FTC emphasized that Rollins could have achieved its business objectives through...
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