Last year, the AAO alerted members that a federal judge in Texas struck down a new rule from the U.S. Federal Trade Commission. The FTC rule would have prevented U.S. employers from enforcing most existing noncompete clauses and requiring new workers to sign noncompete clauses as a condition of employment.

The court ruled that the FTC exceeded its statutory authority by approving the ban and referenced the noncompete rule as being “arbitrary and capricious.” The court’s ruling meant that pending a successful appeal by the FTC, employers could continue to require employees to sign such agreements.

The FTC announced on September 5, 2025 that it will not fight court decisions, including the one in Texas, that struck down its noncompete rule. The agency had filed appeals in response to two court rulings but said it would dismiss those appeals.

Future FTC rulings related to noncompete agreements remain possible, but for now, the agency will use a case-by-case enforcement approach. In addition, be aware that some state statutes address noncompete clauses. When considering implementing or signing a noncompete agreement, please check with your legal counsel for questions about any applicable state laws where the practice is located.

The AAO will continue to monitor FTC activity and update members as needed. Helpful AAO member resources for other types of employment-related needs and concerns include:

  • AAO Career Center: Employers and orthodontic job seekers who are AAO members may use the Career Center at no charge. Listing options for practice sales and recruitment of orthodontic staff are also available.