FTC drops noncompete ban fight
- Ishaan Satija
- Sep 4
- 1 min read
Intro
The idea of banning noncompete contracts is dead for now, leaving millions of workers stuck where they are.
What Changed
After courts blocked its rule, the FTC gave up defending its nationwide noncompete ban. That means whether you can change jobs freely still depends on your state. Nurses, hairstylists, software engineers, and salespeople in strict-rule states can’t switch employers without risking lawsuits. In freer states, workers have more options and higher raises. Employers are rewriting contracts to add new limits, non-solicits, training repayment, or strict NDAs, that quietly do the same job. Small businesses can protect secrets but also lose talent to bigger firms. Workers who hoped to start their own shops are back to waiting out old contracts.
What to Watch Next
Watch state legislatures to see which ones add their own bans or salary limits. If the economy slows, fewer people will test these clauses, but in hot job markets, fights over who owns ideas will only grow.
