DOJ Withdraws Defense as Federal Court Blocks FTC Non-Compete Ban

USCIB continues to actively monitor developments surrounding the Federal Trade Commission’s (FTC) rule banning most employee non-compete agreements.

In a widely expected shift, the US Department of Justice (DOJ) has announced that it will no longer defend the FTC’s non-compete rule in appeals courts, leaving the matter to be resolved through private litigation. Trump-appointed FTC Chairman Andrew Ferguson, a longtime critic of the rule, has emphasized that federal antitrust enforcement should rely on case-by-case analysis rather than sweeping regulation.

USCIB has been closely engaged in this debate, filing amicus briefs to underscore the serious implications that sweeping restrictions on non-compete agreements could have for cross-border competitiveness, investment, and workforce mobility. Earlier this year, a federal court upheld USCIB’s position in a key case on this issue, affirming the importance of a balanced and practical approach to regulating employment agreements.

USCIB will continue to monitor these proceedings and provide timely updates to members as the courts consider the future of non-compete agreements in the US.

For additional background, see USCIB’s earlier report on the federal court decision.