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Sunday, May 17, 2026

From rulemaking to enforcement: the FTC’s non-compete campaign enters a new phase - Reed Smith LLP

On April 15, 2026, the Federal Trade Commission ordered Rollins, Inc. — one of the largest pest-control companies in the United States and parent of household brands Orkin, HomeTeam, and Critter Control — to stop enforcing non-compete agreements against more than 18,000 employees nationwide. The FTC’s complaint alleges that Rollins imposed non-competes on nearly all of its employees, regardless of role or seniority, typically prohibiting them from working anywhere in the pest-control industry for two years after separation within a 75-mile radius — from any of the company’s more than 700 U.S. locations. Alongside the consent order, the agency sent warning letters to 13 additional pest-control companies employing many thousands more workers, urging each to review its employment agreements and eliminate any unfair or anticompetitive non-compete provisions. Under the proposed consent order, Rollins must cease entering into, maintaining, enforcing, or threatening to enforce any non-compete agreement — and must provide written notice to all current and former employees that they are no longer bound by such agreements and are free to compete, including by starting their own businesses.

FTC enforcement ramp-up: a deliberate, escalating campaign

The Rollins order is not a one-off. It is the latest — and largest — in a series of enforcement actions the FTC has brought since abandoning its attempt to impose a nationwide non-compete ban by rule. After the FTC formally dismissed its...



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