Federal landscape
Federal non-compete status
In April 2024, the FTC voted 3-2 to ban most non-competes nationwide. By February 2026, the rule was formally removed from the Code of Federal Regulations. Here is the full timeline — with primary citations — of how that happened and what it means for workers in 2026.
The timeline
From nationwide ban to vacated rule
Four moves in under two years. Each card links to the primary source where one was retrievable.
2024-04-23
FTC issues Final Rule banning most non-competes
16 C.F.R. Part 910 — Non-Compete Clause Rule
FTC voted 3-2 to adopt a rule prohibiting most post-employment non-competes. Existing senior-executive (>$151,164 + policy-making) covenants grandfathered; all others void on effective date. Federal Register publication May 7, 2024.
2024-08-20
Ryan, LLC v. FTC — N.D. Tex. sets aside the rule nationwide
Ryan, LLC v. Federal Trade Commission, Civil Action No. 3:24-CV-00986-E (N.D. Tex. Aug. 20, 2024); 746 F. Supp. 3d 369
Judge Ada E. Brown set the rule aside nationwide under APA § 706. The court held the FTC lacked statutory rulemaking authority under § 6(g) of the FTC Act, and that the rule was 'unreasonably overbroad' and arbitrary-and-capricious. Quoted: 'the question to be answered is not what the Commission thinks it should do but what Congress has said it can do.' (Note: case is in the Northern District of Texas, not the Eastern District as some early coverage stated.)
2025-09-05
FTC votes 3-1 to abandon Ryan and Properties of the Villages appeals
FTC voted 3-1 to dismiss its appeals in Ryan, LLC v. FTC (5th Cir.) and Properties of the Villages v. FTC (11th Cir.) and accede to the vacatur of the rule. Commissioner Rebecca Kelly Slaughter dissented.
2026-02-12
FTC removes 16 C.F.R. Part 910 from the Code of Federal Regulations
91 FR 6507 (Federal Register Document Number 2026-02866)
The FTC removed Part 910 (the Non-Compete Rule) from the Code of Federal Regulations, effective February 12, 2026, in light of the federal court decision vacating it.
What survives
FTC Section 5 authority survives
FTC retains case-by-case authority to challenge specific non-compete agreements as unfair methods of competition. Live example: In re Gateway Services (filed Sept 4, 2025) — FTC challenged blanket non-competes applied to 1,780+ employees 'without any individualized consideration of an employee's role.' Approach: 'rule of reason' analysis targeting 'pernicious and onerous' non-competes — not blanket prohibitions.
15 U.S.C. § 45 (Section 5 of the FTC Act)
On the Hill
Congress (as of 2026)
The federal regulatory ban remains vacated and the field reverts to state law.
S. 2031 — Workforce Mobility Act of 2025
Sponsors: Sen. Chris Murphy (D-CT), Sen. Todd Young (R-IN)
Status: S. 2031 was introduced in the Senate on June 11, 2025. As of November 1, 2026, govinfo publishes only its introduced text.
Near-total ban with sale-of-business and partnership-dissolution exceptions only. FTC + DOL enforcement; private right of action; state AG enforcement.
Bill page on govinfo.gov
The takeaway
What this means for you
With the federal regulatory ban vacated, the question of whether your non-compete is enforceable depends almost entirely on state law — which varies wildly. Some states (CA, MN, ND, OK) treat non-competes as void by statute. Washington joins them on June 30, 2027. Others enforce them only above an income floor. Most apply a reasonableness test that depends on your contract language. The decoder applies the actual 6-input test for your situation: