Noncompetes: Where We Actually Are Now
By The nationwide noncompete ban is dead. In April 2024, the FTC tried to roll out a sweeping rule that would have voided most noncompetes across the country. Federal courts shut it down. A Texas court vacated the rule in August 2024 for lack of statutory authority, and another court enjoined it under the major-questions doctrine. Fast forward: on September 5, 2025, the FTC—by a 3–1 vote—dismissed its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC. That formally ends the rule.
As a result, there is no federal ban in effect. Enforceability is back to what it was before: state law plus the usual contract and antitrust principles.
What the FTC Is Doing Instead
Rulemaking failed, but enforcement didn’t. On September 4, 2025 (one day before dropping its appeals) the FTC filed an administrative complaint against Gateway Services, a large pet-cremation company, over near-universal, one-year, nationwide noncompetes for roughly 1,800 employees, including hourly roles. The agency simultaneously announced a proposed consent order to unwind those restraints.
Here, the FTC is sending a signal that it will chase “unreasonable” noncompetes case-by-case, especially blanket clauses for lower-wage roles or agreements with no real justification.
Tell the FTC What You Think (Comments Due Nov. 3, 2025)
The FTC also opened a Request for Information on how noncompetes are used in the real world. They want data and stories from workers and employers about scope, prevalence, and impact. Comments are open for 60 days, through November 3, 2025. Expect special interest in health care and rural markets, where noncompetes may worsen staffing shortages. You can file through Regulations.gov (search the RFI docket); confidential submission instructions are included in the notice.
What This Means for Employers in the Construction Industry
State law controls.
In general, noncompetes in North Carolina remain lawful if they’re (i) in writing, (ii) supported by valuable consideration, (iii) reasonable in time and geography and (iv) designed to protect legitimate business interests. Broad “industry-wide, statewide, multi-year” bans with no tie to an actual interest are likely restraints of trade, and courts treat them that way.
Watch the Legislature—changes are being attempted.
The North Carolina legislature is considering the Workforce Freedom and Protection Act (2025), which would prohibit noncompetes for workers earning under $75,000. That would sweep in many field roles, coordinators, and some PMs. Even if it doesn’t pass, salary-threshold limits are trending nationwide.
Don’t be at risk of enforcement.
One-size-fits-all agreements are an easy target. If your client uses noncompetes, reserve them for roles where you can articulate the protectable interest and tailor the scope—e.g., a limited radius that matches your market footprint and a short duration tied to the life of customer goodwill or a specific bid cycle.
Alternatives might work better.
Stronger NDAs, narrowly tailored non-solicit provisions (customers/employees), and IP/confidentiality covenants usually carry less risk and often deliver the protection you need.
Practical To-Dos
Audit templates now. Strip out blanket statewide/nationwide language and multi-year terms unless you can defend them. Add role-specific justifications.
Tighten scope. Calibrate geography to where the employee actually worked or had material influence, and limit time to what you can justify (often 6-12 months).
Mind consideration. If you’re hiring, the job offer itself should be enough consideration for a noncompete. If the person already works for you, it probably isn’t—you’ll need to give separate value.
Segment by role. High-access roles aren’t equivalent to entry-level field techs. The restraint shouldn’t be either.
Track legislation. If the $75,000 threshold becomes law, be ready to sunset or convert affected agreements.
There’s no federal noncompete ban today, but the FTC hasn’t declared a ceasefire. Use noncompetes sparingly, tailor them tightly, and back them with real business justifications. Stay alert to the NC salary-threshold bill and consider weighing in on the FTC’s RFI while the window is open.