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Updated September 5, 2025 at 3:07 PM PDT

The Federal Trade Commission is moving to vacate its rule banning noncompete agreements, reversing what was seen as a signature accomplishment of the commission under President Biden.

Noncompetes are employment agreements that prevent workers from taking new jobs with a competing business or starting one of their own, usually within a certain geographic area and timeframe after leaving their job.

The ban, championed by former FTC chair Lina Khan, was finalized in 2024 but never took effect. Following a lawsuit brought by the Dallas-based tax services firm Ryan LLC, a federal judge in Texas found that the FTC had likely exceeded its authority in issuing the ban and halted it nationwide.

Last fall, t

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