There have been several developments related to the Federal Trade Commission (FTC) and the Noncompete Rule finalized under President Biden. On September 4, The Federal Trade Commission (FTC) issued a request for information, open until November 3, 2025, aiming to better understand the scope, prevalence, and effects of employer noncompete agreements, as well as to gather information that could guide future enforcement actions. The FTC’s press release made clear that they plan to tackle labor market practices on a case-by-case basis. The next day, September 5, FTC Chair Andrew Ferguson announced that the agency would drop the federal government’s appeal filed by the previous FTC to defend its rule banning noncompete clauses from previous court action overturning the rule. In his statement, Ferguson, along with Republican Commissioner Melissa Holyoak, emphasized that they opposed the broad scope of that rule when it was issued in April 2024.
In other FTC news, Commissioner Rebecca Slaughter, who was fired by President Trump in March, as part of a larger effort to replace leadership across independent agencies, continues to fight to be reinstated. On September 8, the U.S. Supreme Court overturned an appeal’s court order to reinstate Slaughter while the high court considers the legality of her dismissal. The Supreme Court’s eventual ruling will determine whether Congress can establish independent agencies whose leaders are protected from being fired. The justices return from summer recess on the first Monday of October, and will continue issuing opinions through late July 2026. So far, the Administration hasn’t filed an emergency appeal that could speed up a decision. Early signals suggest this FTC leadership is taking a different approach to regulating noncompete agreements than the previous Administration did.
The FTC has requested public comments, and the ICCFA will be submitting feedback on behalf of our membership. We will share updates as they become available.
