FTC Signals Continued Scrutiny of Noncompete Agreements: What Employers Should Do

Recent action by the Federal Trade Commission (“FTC”) reveals that, despite ongoing legal challenges to a nationwide noncompete ban, employers’ noncompete agreements remain a primary focus of the agency.  A newly issued FTC press release on April 15, 2026 arising from its case against Rollings, Inc.,  one of the nation’s largest pest control companies, highlights the agency’s continued enforcement efforts targeting restrictive employment agreements that it views as unfair or anticompetitive.  In the Rollins action, the FTC ordered the nationwide company to stop enforcing noncompete agreements against more than 18,000 employees and issued a warning to other industry employers.

In 2024, the FTC sought to issue a sweeping rule aimed at banning most noncompete agreements nationwide, citing concerns that such provisions suppress wages, stifle innovation, and limit worker mobility. However, that rule was subsequently challenged in court and ultimately vacated, with the FTC abandoning its defense and removing the rule following adverse judicial rulings.

Now, the FTC has shifted toward a case-by-case enforcement approach, relying on its authority under Section 5 of the FTC Act to challenge noncompete provisions it considers overly broad or harmful to competition. The FTC’s recent April 2026 announcement reinforces this approach, emphasizing enforcement actions designed to “secure protections for workers” and curtail abusive noncompete practices.

The FTC’s latest activity includes:

• Continued Enforcement Authority: Even without a nationwide rule, the FTC is actively pursuing employers whose noncompete agreements are deemed unreasonable or anticompetitive.
• Focus on Overbreadth: Agreements that broadly restrict employees—particularly lower-wage or non-executive workers—are more likely to draw scrutiny.
• Worker Mobility as a Priority: The agency continues to prioritize employee freedom to change jobs and promote competition in labor markets.
• Long-Term Compliance Obligations: Recent consent orders have required employers to rescind noncompetes, notify employees, and submit to ongoing FTC monitoring.

While noncompete agreements remain governed largely by state law, federal enforcement risk is increasing. Courts and regulators are scrutinizing whether such agreements are narrowly or appropriately tailored to protect legitimate business interests, such as trade secrets or confidential information, rather than functioning as blanket restraints on employment.

For Florida employers in particular, where noncompetes are generally enforceable if reasonable in scope, time and duration, this evolving federal oversight creates an additional layer of risk.  In light of these developments, companies should take proactive steps to mitigate exposure by:

• Evaluating all employment agreements containing restrictive covenants, including noncompete, nonsolicitation, and confidentiality provisions. Confirming that restrictions are limited in duration, geographic scope, and scope of activity, and tied to legitimate business interests consistent with applicable law.
• Avoiding “one-size-fits-all” restrictions, particularly for lower-level or non-sensitive employee roles.
• Considering how varying state laws interact with federal enforcement priorities.
• Engaging experienced employment counsel to review and evaluate agreements and recommend revisions.

The FTC’s recent announcement makes clear that noncompete agreements remain a high-priority enforcement area, even in the absence of a uniform federal ban the FTC previously sought. Employers who assume that the invalidation of the 2024 rule eliminates risk may be overlooking significant exposure.

For more information or assistance reviewing your company’s employment agreements, contact the business law and litigation attorneys at CSLaw by visiting www.cslawfl.com or calling 561.609.3190.

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