FTC Dismisses Court Appeal on Non-compete Rulemaking

WASHINGTON - On Sept. 15, the Federal Trade Commission (FTC) announced steps taken to dismiss its court appeal regarding the non-compete rulemaking. The FTC released its statement that it would not be pursuing an appeal.

Last April, PCT reported on the FTC’s 3-to-2 vote to approve a new rule banning noncompetes for all workers. For senior executives, existing noncompetes can remain in force; for all other employees, existing noncompetes are not enforceable.

Non-compete agreements are used by employers to protect trade secrets, confidential information, and investments in employee training. Supporters argue that they help prevent unfair competition by restricting employees from immediately joining or starting rival businesses, especially in roles where proprietary knowledge is involved. Critics argue that such agreements can be overly broad and unnecessarily limit worker mobility and career opportunities.

The National Pest Management Association (NPMA) has kept a close eye on FTC’s actions surrounding non-compete agreements since first published in the Federal Register in January 2023, said Megan Striegel, senior director of public policy, NPMA.

“The FTC's recent decision not to appeal court rulings is a significant development, reinforcing what NPMA has said from the beginning: the original proposal overstepped the Commission's authority,” said Striegel.

Striegel added, “NPMA has another opportunity to make our voice heard on how these agreements protect business investments, trained staff and customer relationships within our industry.”

NPMA encourages individuals within the pest management industry to stay informed and engaged throughout the public inquiry process, Striegel added.