FTC to dismiss noncompete ban

September 8, 2025

The federal rule would have prevented noncompete arrangements, common in physician employment agreements. But the Federal Trade Commission recently voted to vacate the rule.

Tag(s): Practice Management, Perfect Your Practice

Gavel on table

Key Takeaways

The Federal Trade Commission’s (FTC’s) final rule banning all noncompete agreements is on the verge of being defunct due to the FTC’s decision not to defend the rule in court.

The rule faced multiple legal challenges even before its effective date on Sept. 4, 2024, leaving many employers and employees unclear on next steps.

Although approved in April 2023, the Federal Trade Commission’s (FTC’s) final rule banning all noncompete agreements is on the verge of being defunct due to the FTC’s decision not to defend the rule in court.

The rule faced multiple legal challenges even before its effective date on Sept. 4, 2024, leaving many employers and employees unclear on next steps.

The final rule, which was enjoined by courts, would have prohibited employers from issuing noncompete agreements with workers, or provisions that functionally act as noncompete agreements, as well as require employers to stop enforcing most existing arrangements. The FTC appealed the injunction, but on September 5, 2025, it was announced that the FTC voted to vacate the rule and asked the court to dismiss its appeal.

Resources for practice success

As a legislated profession, optometry is defined by the laws governing its practice. However, legislation rarely determines the finer points of the law. Staff and volunteers in the AOA Advocacy Group work with regulatory agencies every day to define the details that determine the impact of legislation on doctors of optometry and their patients.

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