FTC Approves Final Consent Order in Pest-Control Noncompete Matter

The Federal Trade Commission finalized a consent order that requires Rollins Inc.-one of the largest pest-control companies in the United States-to stop enforcing noncompete agreements against more than 18,000 employees nationwide.

The FTC alleged that Rollins imposed noncompete agreements on nearly all its employees, which typically prohibited them from working in the pest-control industry for two years after ending employment with Rollins. The company's noncompete agreements prohibited employees from working in pest control within a predetermined distance, typically within a 75-mile radius from one of Rollins' more than 700 locations in the U.S., according to the FTC's complaint.

The FTC's final consent order requires Rollins to stop enforcing noncompete agreements against thousands of current and former Rollins workers, which will free them from these alleged unfair and anticompetitive agreements. The final consent order also imposes other conditions, including requiring Rollins to provide notice to current and former employees that they are no longer subject to a noncompete agreement and that they can compete against Rollins, including by starting their own business.

Following a public comment period, the Commission voted 2-0 to approve the final order.