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.
Note: primary URL was not retrievable from this research session (CDN blocked); citation confirmed via secondary analyses.
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 (Ferguson, Holyoak, Meador in majority; Slaughter dissent) to drop appeals to the 5th Circuit and 11th Circuit. Slaughter dissent argued the FTC was 'throw[ing] in the towel' and that vacatur required APA notice-and-comment. Chairman Ferguson stated the FTC 'will continue to enforce the antitrust laws aggressively against non-compete agreements' under Section 5.
Note: primary URL was not retrievable from this research session (CDN blocked); citation confirmed via secondary analyses.
2026-02-12
FTC removes 16 C.F.R. Part 910 from the Code of Federal Regulations
Federal Register Document Number 2026-02866
Administrative delisting of the rule from the CFR — the formal end of the federal regulatory ban. Field reverts entirely to state law, plus FTC retained Section 5 case-by-case authority.
Note: primary URL was not retrievable from this research session (CDN blocked); citation confirmed via secondary analyses.
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)
No federal non-compete legislation has been enacted as of 2026-05-08. 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)
Reintroduced: 2025-06-12
Status: Pending in Senate; no floor action verified as of 2026-05-08.
Near-total ban with sale-of-business and partnership-dissolution exceptions only. FTC + DOL enforcement; private right of action; state AG enforcement.
Track on congress.govH.R. 2550 — Protect America's Workforce Act
Status: Status unverified as of 2026-05-08; tracker URL surfaced but bill page not fetched this session.
Track on congress.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: