Lina Khan defends the FTC's noncompete ban; Andrew Ferguson challenges its authority
Khan defended the FTC's nationwide noncompete rule as a protection for workers and competition. Ferguson challenged its legal authority. The rule was blocked and is not enforceable; their disagreement concerns the scope of FTC power.
Case period:
Published by The Dispute Index editorial teamPublished Updated
Overview
The rule sought to prohibit new worker noncompetes and most existing ones, with exceptions. Khan and fellow commissioners defended statutory authority in a December 31, 2024 response to the dissent. Ferguson's June 28 dissent separates policy wisdom from legal authority. The FTC's current notice says a district court stopped enforcement on August 20, 2024. On September 5, 2025, the commission announced steps to dismiss its appeals and accept vacatur. This is a historical rulemaking dispute, not an announcement that a national ban currently protects every worker.
People in this case
Lina KhanDirectly involved
Andrew N. FergusonDirectly involved
Timeline
3 timeline entries on this page. Dates: April 23, 2024 to September 5, 2025
April 2024
FTC adopts noncompete rule
The commission adopts a nationwide rule restricting worker noncompetes.
[01]Federal Trade Commission
The adoption announcement includes Khan's policy argument. A notice now states that the rule is not in effect or enforceable.
FTC announces national noncompete rule · Federal Trade CommissionLina Khan statement; current status notice
August 2024
Court blocks rule enforcement
The FTC's status notice records the district court order stopping enforcement.
[01]Federal Trade Commission
The adoption announcement includes Khan's policy argument. A notice now states that the rule is not in effect or enforceable.
FTC announces national noncompete rule · Federal Trade CommissionLina Khan statement; current status notice
September 2025
FTC moves to dismiss appeals
The commission votes 3-1 to dismiss its appeals and accept vacatur of the rule.
[02]Federal Trade Commission
The FTC announces steps to dismiss its appeals and accept the rule's vacatur.
FTC takes steps to dismiss noncompete appeals · Federal Trade CommissionOpening paragraphs and 3-1 commission vote
Claims
Claims separate what was said from what is contested. Follow each source for the original wording and context.
What's disputed
Disputed claim
The FTC has statutory authority to issue its nationwide noncompete rule.
Sources (1)
- Khan and colleagues answer noncompete dissent · Federal Trade CommissionSection a, printed pages 1-6
Response record
Responses
Choose one response filter, or select All responses to see the full record.
2 responses. Newest first.
Lina KhanFTC chair at the time, in a statement joined by Rebecca Kelly Slaughter and Alvaro BedoyaDirectly involvedBefore this statement
Khan answers Commissioners Ferguson and Holyoak in a statement dated December 31, after the court had blocked enforcement.
"The Commission has the authority to promulgate this rule, based on the plain text of the FTC Act, case law, and statutory history."
Defended or excusedCase context: Lina Khan defends the FTC's noncompete ban; Andrew Ferguson challenges its authority
Full statement and sources
Khan argues that the FTC Act authorizes the noncompete rule.
After the statement
She cites Section 6(g) and the National Petroleum Refiners decision.
Khan and colleagues answer noncompete dissent · Federal Trade CommissionSection a, printed pages 1-6Why this label?
The reference point is the FTC's nationwide rule. Khan expressly defends its legal authority.
This label describes the statement's response within the context above.
Andrew N. FergusonFTC commissioner at the time, joined by Melissa HolyoakDirectly involvedBefore this statement
Ferguson describes the rule as the most extraordinary assertion of authority in the FTC's history.
"Whatever the Final Rule’s wisdom as a matter of public policy, it is unlawful. Congress has not authorized us to issue it. The Constitution forbids it. And it violates the basic requirements of the Administrative Procedure Act."
CondemnedCase context: Lina Khan defends the FTC's noncompete ban; Andrew Ferguson challenges its authority
Full statement and sources
Ferguson argues that the rule exceeds the FTC's lawful authority regardless of policy wisdom.
After the statement
He dissents on statutory, constitutional and administrative-law grounds.
Ferguson and Holyoak dissent from noncompete rule · Federal Trade CommissionPage 1 and authority analysisWhy this label?
The reference point is the FTC's nationwide rule. Ferguson expressly rejects its lawfulness, without necessarily defending every noncompete agreement.
This label describes the statement's response within the context above.
Sources
(4)
Official statement
FTC announces national noncompete rule
Relevant passage: Lina Khan statement; current status notice
About this source
The adoption announcement includes Khan's policy argument. A notice now states that the rule is not in effect or enforceable.
- Author
- Federal Trade Commission
- Published
- Accessed
Original text
Khan and colleagues answer noncompete dissent
Relevant passage: Section a, printed pages 1-6
About this source
Khan, joined by Slaughter and Bedoya, argues that the FTC Act, precedent and statutory history authorize the rule.
- Author
- Lina Khan
- Published
- Accessed
Official statement
FTC takes steps to dismiss noncompete appeals
Relevant passage: Opening paragraphs and 3-1 commission vote
About this source
The FTC announces steps to dismiss its appeals and accept the rule's vacatur.
- Author
- Federal Trade Commission
- Published
- Accessed
Original text
Ferguson and Holyoak dissent from noncompete rule
Relevant passage: Page 1 and authority analysis
About this source
Ferguson argues the rule is unlawful regardless of its policy merits. Melissa Holyoak joins the dissent.
- Author
- Andrew N. Ferguson
- Published
- Accessed
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Cite this record
- Publisher
- The Dispute Index
- Title
- Lina Khan defends the FTC's noncompete ban; Andrew Ferguson challenges its authority
- First published
- Last updated
- Permalink
- https://disputeindex.com/cases/ftc-noncompete-ban-khan-ferguson-rulemaking-authority
The Dispute Index. "Lina Khan defends the FTC's noncompete ban; Andrew Ferguson challenges its authority". First published: 2026-10-16. Last updated: 2026-10-16. https://disputeindex.com/cases/ftc-noncompete-ban-khan-ferguson-rulemaking-authority