WASHINGTON, D.C. — The Federal Trade Commission has finalized an order prohibiting Rollins Inc., one of the nation’s largest pest-control companies, from enforcing noncompete agreements against more than 18,000 current and former employees, a move that could allow thousands of workers to seek jobs with competitors or launch their own businesses.
The FTC alleged that Rollins imposed noncompete agreements on nearly all of its employees, restricting them from working in the pest-control industry for two years after leaving the company.
According to the agency’s complaint, the agreements also barred employees from working in pest control within a predetermined geographic area, typically within a 75-mile radius of one of Rollins’ more than 700 U.S. locations.
The commission said the restrictions harmed competition by limiting workers’ ability to change jobs and reducing opportunities for new businesses to enter the market.
Under the final consent order, Rollins must stop enforcing the agreements and notify affected current and former employees that they are no longer bound by the noncompete provisions and may compete against the company.
The order also requires the company to inform workers that they are free to start their own pest-control businesses.
The commission approved the final order by a 2-0 vote following a public comment period.
The action marks one of the FTC’s most significant enforcement efforts targeting noncompete agreements since the agency intensified scrutiny of employment restrictions that it says suppress wages and limit worker mobility.
Rollins, which operates through several pest-control brands across the United States, did not immediately comment in the FTC announcement on the final order or admit wrongdoing as part of the settlement.
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