Federal Register #3084AB74

FTC Removes Non-Compete Clause Rule from Federal Regulations

This notice announces the Federal Trade Commission's (FTC) final rule removing the Non-Compete Clause Rule from the Code of Federal Regulations. - Government Buyer: - Federal Trade Commission (FTC) - Key Details: - The Non-Compete Clause Rule, previously at 16 CFR part 910, is officially removed. - The rule had aimed to prohibit non-compete clauses with workers as an unfair method of competition under section 5 of the FTC Act. - Judicial decisions stayed and vacated the rule's enforcement, prompting this removal. - The rulemaking process included extensive public comments and legal challenges. - Products/Services: - No products or services are being procured or requested in this notice. - OEMs and Vendors: - No OEMs or vendors are mentioned. - Unique Requirements: - This is a regulatory action, not a procurement opportunity; no acquisition requirements are present.

Description

The Federal Trade Commission (FTC) proposed the Non-Compete Clause Rule to prohibit non-compete clauses with workers as an unfair method of competition under section 5 of the FTC Act. The rule was finalized on May 7, 2024, but enforcement was stayed by federal courts in Florida and Texas. The FTC later acceded to the vacatur of the rule and issued a final rule removing it from the Code of Federal Regulations on February 12, 2026. The rulemaking process included extensive public comments and judicial challenges, reflecting the FTC's regulatory review and reform efforts.

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