Overview

• On September 5, the FTC voted 3–1 to withdraw its appeals, abandoning the blocked nationwide rule so the Final Rule never took effect.
• On September 10, the FTC sent warning letters to several large health care employers and staffing firms urging reviews of noncompetes and related covenants.
• The template letters cite Section 5 authority and caution that failing to fix overbroad or unjustified restrictions could trigger civil investigative demands or other actions.
• The FTC’s Request for Information issued September 4 seeks public input on where noncompetes may suppress mobility or access to care, signaling priorities for oversight.
• With no federal ban, employers face a patchwork of state laws and are being advised to narrow restrictive covenants, consider alternatives, and prepare for potential inquiries.