Overview

• On Sept. 5, the FTC moved to dismiss its appeals of injunctions and voted 3–1 to take steps to vacate its proposed nationwide noncompete ban.
• In early September, the FTC sent warning letters to large health care employers and staffing firms urging a review of noncompete and other restrictive covenant practices.
• The agency launched a public inquiry into noncompete practices that will accept submissions through Nov. 3, 2025.
• Recent guidance highlights factors the FTC will weigh in enforcement, including worker wage and skill level, scope and duration, less restrictive alternatives, market power, and evidence of economic effects.
• With the federal rule shelved, employers face divergent state regimes as Maryland, the District of Columbia, and Virginia expand limits, including Virginia’s extension to certain non‑exempt workers effective July 1, 2025.