The Non-Compete Landscape. Here's What's Actually Enforceable in 2026
What Is a Non-Compete Agreement?
What Happened to the Federal Ban?
The FTC’s 2024 rule would have voided most existing non-competes and banned new ones entirely, treating them as an unfair method of competition. It never took effect. A federal court in Ryan LLC v. FTC (N.D. Tex. 2024) vacated the rule just before its effective date, holding the FTC lacked authority to issue a sweeping, industry-wide ban of this kind. The Fifth Circuit upheld that result, and in February 2026, the FTC formally removed the rule from the Code of Federal Regulations, closing the book on it for good.
The Patchwork: From Near-Total Bans to Routine Enforcement
Where DC and Maryland Actually Stand
What This Means If You're Considering, or Already Bound By, a Non-Compete
- Your state matters more than your contract’s language. A non-compete drafted to be enforceable in Virginia may be void the moment it’s applied to someone actually working in DC.
- Your income matters just as much as your state. In DC specifically, whether you’re above or below the highly-compensated-employee threshold can single-handedly determine whether your non-compete is enforceable at all.
- Remote work complicates the analysis. Courts increasingly look at where you actually work and serve clients, not just where your employer is headquartered.
- An unenforceable non-compete doesn’t mean everything in your agreement is unenforceable. Confidentiality and non-solicitation provisions are usually analyzed separately, and often survive even where the non-compete itself doesn’t. See our Executive Employment Contracts overview for how these different restrictive covenants interact.
Frequently Asked Questions
Is the FTC non-compete ban coming back?
I signed a non-compete in DC before October 2022. Does the ban help me?
I make close to DC's highly-compensated-employee threshold. How do I know if my non-compete is enforceable?
My employer is in Virginia but I work from home in Maryland. Whose law applies?
Bottom Line
Questions about Non-Compete at Work?
Or call 301.245.3035 · Intake@WilkenfeldLO.com
Reviewed by Ari Wilkenfeld, Esq. (DC Bar No. 461063; MD Bar No. 9806240300). Ari has over 27 years of experience litigating in federal and state courts, and before the U.S. Equal Employment Opportunity Commission (EEOC), the U.S. Merit Systems Protection Board (MSPB), and various arbitration panels. Ari has been recognized by Esquire Magazine as “a famously determined Civil Rights lawyer” and by the New York Post as “a high powered DC Lawyer.” Last updated: September 22, 2026.