On January 19, 2023, the  Commission proposed the Non-Compete Clause Rule. 88 FRS 3482 (Jan. 19, 2023). The comment period as extended closed on April 19, 2023, 88 FR 20441 (Apr. 6, 2023), and the Commission received over 26,000 public comments. The Commission issued a final rule on May 7, 2024. 89 FR 38342 (May 7, 2024). The Non-Compete Clause Rule provides that it is an unfair method of competition and therefore a violation of section 5 of the Federal Trade Commission Act for persons to, among other things, enter into or attempt to enter into non-compete clauses with workers on or after the final rule’s effective date. On August 15, 2024, a federal district court in Florida issued a decision granting a stay and enjoining the FTC’s enforcement of the Rule against the plaintiff in that case. On August 20, 2024, a federal district court in Texas issued a similar order, which had a nationwide effect of stopping the FTC from enforcing the rule on September 4, 2024, the rule’s effective date. On March 7, 2025, the federal government filed motions for a 120-day stay of its challenges in the U.S. Court of Appeals for the Fifth and Eleventh Circuits. On September 5, 2025, the Commission voted 3-1 to dismiss its appeals in Ryan, LLC v. FTC,  No. 24-10951 (5th Cir.), and Properties of the Villages v. FTC,  No. 24-13102 (11th Cir.) and accede to the vacatur of the Non-Compete Rule. On February 12, 2026, the Commission issued a final rule removing the Non-Compete Rule codified at 16 CFR part 910 from the Code of Federal Regulations (CFR”) to conform the rule to the courts’ decisions in Ryan and Properties of the Villages.  91 FR 6507 (Feb. 12, 2026).