The FTC did issue a final nationwide noncompete rule in April 2024, but a federal court later struck it down, so the rule did not remain an enforceable nationwide prohibition.
Misleading
The Federal Trade Commission finalized a nationwide rule prohibiting noncompete clauses in worker employment contracts.
Noncompete Rule | Federal Trade Commission
Source: ftc.gov
At a glance
Verified September 2, 2026Key Evidence
The FTC finalized and announced a nationwide noncompete rule in April 2024, rather than merely proposing one.
A Texas federal court later struck down the rule, ruling that the FTC lacked authority to issue such a broad regulation.
The FTC’s current explanatory pages describe the rule’s substance, but those pages do not negate the court ruling that prevented the rule from operating as a nationwide prohibition.
The reporting
What the Evidence Shows
The Federal Trade Commission issued its final Noncompete Clause Rule on April 23, 2024. The agency described it as a nationwide ban on new noncompetes for workers, with provisions also affecting some existing agreements. In that limited sense, the claim correctly identifies the FTC’s action as a finalized rule rather than a proposal.ftc.govftc.govNoncompete Rule
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