The FTC noncompete rule is not in effect. What should you review next?

A headline about noncompetes cannot tell you whether a particular agreement restricts a job change, a new venture or a business sale. The immediate task is to identify the actual document, the parties and the provision being discussed. A national policy headline is only one part of that review.

The FTC's current rule page states that its Noncompete Rule is not in effect and is not enforceable. It describes the August 2024 district-court order and the September 2025 steps to dismiss the Fifth Circuit appeal. [1] That is the rule's status; it is not a conclusion that every private restriction is enforceable, or that every restriction is invalid.

Keep a clean copy of the signed agreement and each amendment. Identify whether the issue concerns employment, consulting, a business sale or another arrangement. Note which provision refers to competing work, customers, employees or confidential information. Those categories should not be merged into a single label merely because they appear in the same contract.

Prepare a short question list for counsel: Which jurisdiction and governing-law clause matter? What activity is contemplated? What dates and parties are involved? Has anyone sent a demand or identified a deadline? The answers help define the review; this article does not supply a legal conclusion for those facts.

For businesses, the practical drafting question is what legitimate operational concern the agreement is supposed to address. Describe that concern clearly for the attorney reviewing the document. Do not assume that changing a heading or copying another company's clause resolves the legal issue.

For a worker or owner considering a change, request a document-specific assessment before relying on a general headline. Preserve relevant records and use an appropriate confidential channel for the details. This draft offers a preparation framework, not permission to disregard an agreement.