Trump Admin to Overturn Non-Compete Ban

The Federal Trade Commission has abruptly reversed its course on a landmark rule to ban non-compete agreements, a decision that promises to significantly impact the career mobility of journalists, producers, and on-air talent while reinforcing the power of major media companies to retain their top performers.

The move, a direct result of President Donald Trump's new leadership at the antitrust agency, effectively kills the Biden-era prohibition that was set to upend employment dynamics in talent-driven fields like news and entertainment. The FTC announced Friday it was dropping its legal defense of the rule, which had been temporarily blocked by court challenges. For media professionals, this means the contractual "golden handcuffs" that prevent them from working for a competitor are here to stay.

Non-compete clauses are especially prevalent in the highly competitive media landscape. They contractually forbid employees—from investigative reporters to network executives—from taking a new job at a rival organization for a specified period after their departure.

Critics of the practice, including many within the industry, argue these agreements artificially suppress wages and stifle innovation. A star anchor, for example, is prevented from leveraging a competing offer from another network to negotiate a higher salary. A talented producer with a groundbreaking idea for a new digital series cannot leave to start their own venture or join an up-and-coming competitor. The ban, championed by former FTC Chair Lina Khan, was seen as a way to restore this fundamental liberty and inject dynamism into the labor market.

"Today’s decision to walk away from that rule is a stunning betrayal of workers, entrepreneurs, and the agency’s own mission," said Nidhi Hegde of the American Economic Liberties Project, echoing the sentiment of many who saw the ban as a crucial rebalancing of power.

The decision to abandon the rule was formalized in a 3-1 vote by the commission. This vote reflects the recent political shift at the agency, which saw Trump attempt to remove two Democratic commissioners. One, Alvaro Bedoya, resigned, while the other, Rebecca Slaughter, remains and cast the lone dissenting vote against scrapping the rule.

With the non-compete ban now defunct, the media industry returns to a status quo where established players hold a powerful tool to lock down talent, potentially limiting employee earning power and the cross-pollination of ideas that fuels a competitive and innovative media landscape.