Overview

• In a 3–1 vote on Sept. 5, the FTC dismissed its appeals of court rulings against the 2024 noncompete rule, with Commissioner Rebecca Slaughter dissenting as the rule remained vacated and never took effect.
• The Justice Department asked the 5th and 11th Circuits to dismiss the appeals, signaling the administration’s decision not to pursue the blanket ban in court.
• On Sept. 4, the FTC filed a complaint and proposed consent order against Gateway Services alleging overbroad one‑year, nationwide noncompetes for nearly all employees, including hourly staff.
• The proposed Gateway order would prohibit entering into or enforcing most noncompetes, limit certain non‑solicitation clauses, require worker notices and impose compliance and reporting obligations for ten years, with narrow exceptions such as some sale‑of‑business situations.
• FTC Chair Andrew Ferguson said the commission will pursue case‑by‑case enforcement, invited public submissions to an employer noncompete inquiry due Nov. 3, 2025, and warned that firms in industries with pervasive use of such clauses will receive warning letters.