The Federal Trade Commission has taken steps to drop its appeal of a court decision striking down the Commission's rule banning non-compete agreements with employees who leave a company.

At the time the Biden FTC issued the Rule, current Chairman Andrew N. Ferguson and Commissioner Melissa Holyoak dissented on the grounds that the FTC lacked the statutory authority to issue the rule. The district court found that the FTC does lack the authority and prohibited enforcement of the rule. 

The current Commission voted 3-1 to dismiss the appeal brought in the Biden Administration. The FTC issued a statement that it will enforce anticompetitive actions in employment agreements on a case by case basis rather than by rulemaking.