In April 2024, the Federal Trade Commission finalized a rule that would effectively ban the majority of noncompete agreements in employer contracts. The rule has since been challenged in lawsuits.
Critically, in August, a federal judge in Texas issued a nationwide injunction blocking the ban’s implementation, leaving its future in flux as FTC leadership changed hands amid a new presidential administration.
Now, the agency is again evaluating the noncompete ban and other regulations as it moves to reduce what it calls “anticompetitive” regulatory hurdles under President Donald Trump.
Here are five things to know regarding the FTC:
1. The noncompete ban remains under challenges in the 5th and 11th circuits, according to an April 14 report by The National Law Review. On March 7, the FTC asked the two courts to hold the appeals “in abeyance” for 120 days to allow the FTC to reassess its position on the ban. Both courts granted the requests and ordered the FTC to submit a “status” report by July 10 and 18, respectively.
2. Beyond the noncompete ban, Mr. Trump, FTC Chair Andrew Ferguson and other agency leaders have been vocal about their intent to crack down on what they consider anticompetitive behavior.
3. On April 14, the agency launched a public inquiry into the effect of federal regulations on competition to identify and reduce anticompetitive regulatory hurdles. The inquiry follows President Trump’s April 9 executive order on reducing anticompetitive regulatory barriers, which aims to eliminate regulations that “reduce competition, entrepreneurship and innovation — as well as the benefits they create for American consumers.”The probe will evaluate regulations that exclude new market entrants, protect dominant incumbents and predetermine economic winners and losers, according to the order.
4. The FTC has issued a request for information seeking public comment on how federal regulations can harm competition. Members of the public — including consumers, workers, businesses, startups, potential market entrants, investors and academics — are encouraged to provide their feedback. The public has until May 27 to submit comments, which will be published on regulations.gov.
5. The Justice Department, meanwhile, in March launched an anticompetitive regulations task force to identify and eliminate federal and state regulations that hinder market competition.
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