On September 5, 2025, the Federal Trade Commission (FTC) announced it would end its appeals for two U.S. District Court rulings — Ryan, LLC v. FTC (Texas) and Properties of the Villages v. FTC (Florida). Chairman Ferguson and Commissioner Holyoak issued a joint statement supporting the decision to abandon the appeals. Commissioner Meador concurred, and Commissioner Slaughter dissented. 

The decision marks the end of uncertainty for employers nationwide regarding the enforceability of noncompete agreements. Bottom line: noncompetes will remain a state law issue. 

Currently, more than 30 states have implemented restrictions requiring that noncompetes be reasonable in time, scope, and the geographical area of the restriction. But state law varies depending on where an employer, and its employees, are located. For example, Florida courts are far more receptive to enforcing noncompetes, often granting injunctive relief to prevent employees from competing. By contrast, California and a few other states prohibit enforcement of noncompete agreements altogether.

State law is constantly evolving, with many states looking into whether noncompetes should be permitted, restricted, or banned outright. Due to the constantly changing landscape, employers should consider reviewing agreements with counsel to ensure they comply with various state laws.