FTC Orders Rollins, Inc. to Void Employee Non-Competes, Signaling Broader Crackdown

The Federal Trade Commission has formalized enforcement action against Rollins Inc., parent company of major pest control brands including Orkin, HomeTeam, and Critter Control, for systematically imposing non-compete agreements on the vast majority of its workforce. Under the proposed consent order approved by a 2-0 FTC Commission vote, Rollins must void existing non-competes affecting more than 18,000 employees, issue individualized notices confirming the restrictions are unenforceable, and refrain from imposing or enforcing non-competes on non-executive staff for the next decade.

The FTC's complaint detailed the scope and enforcement rigor of Rollins' practices. The company required nearly all employees—from pest-control technicians to sales representatives—to sign non-compete agreements barring them from working in the pest control industry for two years following termination anywhere within approximately 75 miles of any Rollins location across the United States. Critically, employees had minimal ability to negotiate these terms, received no additional compensation for signing, and often were unaware of the full consequences. Rollins pursued aggressive enforcement, sending hundreds of cease-and-desist letters to departing workers and initiating lawsuits against former employees who sought to work for competitors, thereby restricting job mobility and deterring competitive market entry.

This enforcement action represents a strategic pivot by the FTC following the collapse of its broader regulatory approach. In early 2023, the agency proposed a sweeping Non-Compete Clause Rule that would have banned nearly all post-employment non-compete agreements nationwide under Section 5 of the Federal Trade Commission Act. The rule faced legal challenge and was ultimately vacated by federal court in August 2024 on jurisdictional grounds. The FTC officially withdrew its appeal in September 2025, abandoning the rulemaking effort. Rather than retreat entirely, FTC leadership committed to targeting unlawful non-competes through individualized Section 5 enforcement actions—a strategy exemplified by the Rollins settlement.

Simultaneously, the FTC issued warning letters to thirteen additional pest control companies, effectively placing the entire sector on notice. This coordinated approach suggests the agency intends to pursue companies with expansive, standardized non-compete requirements, particularly those affecting lower-wage employees without access to trade secrets or sensitive competitive information. Employers should recognize that the FTC remains actively engaged in this space despite the failed rulemaking; state-level regulatory developments further complicate the landscape, as many jurisdictions have enacted restrictions on non-competes for low-income workers and some have prohibited them entirely. Companies operating across multiple states face heightened compliance obligations to ensure alignment with both federal enforcement priorities and applicable state statutes.