The order follows a complaint filed April 15, 2026, alleging that Rollins indiscriminately imposed noncompetes on nearly all employees regardless of pay or position. The FTC argued these agreements suppressed wages, restricted job mobility, and hindered competition. The final order includes a 10-year compliance regime requiring annual reports and FTC access to company records and employee interviews. Simultaneously, the FTC issued warning letters to 13 other pest-control companies, signaling similar enforcement action may follow.
Attorneys should treat this as a watershed moment in noncompete enforcement. The order validates the FTC's aggressive stance against blanket restrictions on lower-wage workers and establishes a template for future actions across industries. Employers relying on standardized noncompetes—particularly those covering non-executive staff—face heightened scrutiny. Companies in pest control and related fields should audit existing agreements immediately. The 10-year compliance regime also signals that the FTC will maintain close oversight of Rollins' hiring practices, setting a precedent for monitoring obligations in future settlements.