The noncompete ban issued by the Federal Trade Commission emerged as one of the most talked about employment law issues in 2024 affecting workers, including medical professionals.
Noncompete agreements contractually prohibit workers from joining or starting a competing business after leaving their previous employment. These agreements typically contain terms designating for how long and where these restrictions apply. However, with President-elect Donald J. Trump’s incoming administration, significant changes are expected at the Federal Trade Commission (FTC) in 2025 that may alter the fate of the FTC’s noncompete ban.
Trump recently announced that current FTC commissioner Andrew Ferguson will become the next FTC chair and nominated Mark Meador to fill the seat of outgoing chair Lina Khan — creating a Republican majority on the FTC. This post-2024 FTC is expected to follow a free-market business approach and reject regulation, which will likely kill the FTC’s noncompete ban.
Federal ban timeline
In April of last year, the FTC adopted a final rule prohibiting most employers from maintaining or enforcing noncompetes against employees and independent contractors. The ban was intended to create new business, increase earnings for workers, lower health care costs and drive innovation. However, in August, a Texas federal judge issued an order blocking the FTC from enforcing the rule, which was set to take effect on September 4, 2024. The FTC has appealed the decision.
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