The Federal Trade Commission has dropped its nationwide push to prohibit non-compete agreements, leaving the long-standing practice intact for radio companies and other employers. On September 5, commissioners voted 3-1 to dismiss an appeal in the Fifth Circuit, effectively ending the Biden administration’s labor initiative before a court deadline.
First proposed in April 2024, the rule would have barred most non-competes except for senior executives earning more than $151,164 annually. Its demise follows a 2024 ruling by US District Judge Ada Brown, who found the FTC lacked authority to impose such a sweeping ban. Republican commissioners had already opposed the rule as an overreach.
The decision reignited partisan clashes. Democratic Commissioner Rebecca Slaughter, whose firing remains contested, argued the Trump administration was siding with corporate interests. She noted that of the 26,000 public comments submitted, more than 25,000 favored banning non-competes, and she warned that millions of workers remain trapped by “draconian agreements.”
Air talent in radio had been especially vocal in supporting a ban, arguing that non-competes limit job mobility within local markets. Broadcasters, however, view them as essential for protecting investments in personalities and sales teams.
Republican Chairman Andrew Ferguson countered that the Biden FTC brought only four non-compete cases in four years and settled most just before advancing the proposed ban. He pledged that current leadership would focus on targeted enforcement rather than broad rules, replacing what he called “hollow rhetoric in press releases.”
Non-compete agreements remain governed by state laws, which vary widely in scope and enforceability. The Society for Human Resource Management, which had predicted the courts would strike down the rule, said the dismissal confirmed its position. While the broad prohibition is dead, the FTC signaled it may still pursue selective actions against anticompetitive contracts.