U.S. FTC orders Rollins to end worker noncompete agreements
WASHINGTON, UNITED STATES — The United States Federal Trade Commission has ordered pest control giant Rollins to stop enforcing noncompete agreements against more than 18,000 employees nationwide, the latest federal move to loosen restrictions that keep workers locked to a single employer.
According to a report from Staffing Industry Analysts, the agency also sent warning letters to 13 other pest control firms asking them to review their noncompete policies.
Rollins, whose brands include Orkin, HomeTeam and Critter Control, had barred workers from pest control jobs for two years within a 75-mile radius of any of its roughly 700 U.S. locations after leaving the company.
The order covers a wide mix of roles, from technicians to customer service representatives, many earning relatively low wages. The FTC said Rollins also issued hundreds of cease-and-desist letters to former employees and filed multiple lawsuits alleging breach of contract.
“The American economy runs best when workers are not limited by noncompete agreements that distort competition and prevent workers from changing jobs, starting competing businesses and earning higher wages,” Daniel Guarnera, director of the FTC’s Bureau of Competition, said in a press release.
“Rollins imposed these agreements on employees who had no ability to negotiate, received no extra compensation or other incremental consideration for signing the agreement, and were asked to sign these agreements with little or no opportunity to fully consider and understand what they meant,” FTC wrote in a press release.
Compliance risk rises for staffing and outsourcing firms
The crackdown extends beyond pest control. The FTC warned several large healthcare companies and staffing firms in September 2025 to review their noncompete practices and has taken action against Adama Amenity Services and Gateway Services.
Tim Szuhaj, legal research analyst for the Americas at SIA, said noncompetes create real headaches for staffing providers.
“The temp’s former employer sends a cease-and-desist letter to the buyer and the staffing firm claiming that the temp cannot be employed as placed because of a noncompete,” Szuhaj said.
Agencies and outsourcing firms that rely on broad, boilerplate noncompetes across entire organizations now face heightened enforcement and reputational risk.
What looser noncompetes mean for global hiring and remote work
Fewer noncompetes could reshape how companies build teams. U.S. employers looking to tap global talent pools may find supply looser as domestic workers become less constrained, potentially accelerating the adoption of remote and offshore roles.
Looser restrictions also make it easier for knowledge workers to build portfolio careers, switch between remote employers or move into freelancing and global contracting — trends that directly benefit the offshoring and BPO industry.
State legislatures are moving in the same direction, increasingly limiting or banning noncompetes for physicians, nurses, mental health professionals and other licensed practitioners.
