FTC Escalates Enforcement on Noncompetes After Rollins Crackdown
The FTC ordered Rollins, Inc. to stop enforcing noncompete agreements for 18,000 employees.
Why it matters: Noncompete clauses affect millions of U.S. workers. Renewed FTC enforcement increases litigation risk and forces employers to reassess HR practices around restrictive covenants.
- On April 17, 2026, the FTC ordered Rollins to cease enforcing noncompete agreements for 18,000 workers.
- Rollins’ agreements barred employees from working in pest control within 75 miles of any of 700+ locations for two years post-employment.
- The FTC’s proposed order requires Rollins to notify workers that noncompete clauses are no longer in effect.
- This marks a shift to case-by-case enforcement after the agency’s broader ban was blocked in 2024.
The Federal Trade Commission has taken decisive action against Rollins, Inc., a national pest control provider, by ordering the company to end enforcement of noncompete agreements covering over 18,000 employees.
- Rollins’ noncompete deals prevented former staff from working in the pest control industry within 75 miles of any of its 700+ U.S. locations for two years after leaving.
- The FTC alleges Rollins sent hundreds of cease-and-desist letters and filed lawsuits to enforce these agreements, stifling worker mobility and competition.
Per a proposed consent order, Rollins must void its noncompete agreements and inform current and former employees they no longer apply. This move signals the FTC's intent to actively target what it sees as “unjustified, overbroad, unfair, or anticompetitive” noncompetes.
The FTC had previously attempted a sweeping national ban on noncompete clauses in April 2024, but implementation stalled after a district court blocked the rule later that year. The agency dismissed its appeal in September 2025, pivoting to case-specific litigation and enforcement.
“Once again, the FTC is fighting for American workers to ensure that they have the freedom to pursue new job opportunities and better pay,” said Daniel Guarnera, Director of the FTC’s Bureau of Competition.
The FTC’s enforcement posture reflects its view—articulated by Chairman Andrew N. Ferguson—that “many non-compete agreements likely violate our antitrust laws.” The agency is now leveraging traditional casework to rein in employer overreach, even amid legal setbacks on its broader regulatory authority.
By the numbers:
- 18,000 — Rollins employees covered by prohibited noncompete agreements
- 700+ — Rollins locations nationwide impacted by the FTC’s order
- 2 years — Duration of Rollins’ noncompete restrictions post-employment
Yes, but: The public comment period for the proposed consent order is pending, so immediate legal effect is not guaranteed.