Rollins, Inc.

Under the proposed FTC consent order, Rollins must cease enforcing noncompete agreements, notify current and former employees they are no longer bound, and allow them to compete including starting competing businesses. The order is subject to 30 days of public comment.

The FTC ordered Rollins, Inc. — one of the nation's largest pest-control companies and parent of Orkin, HomeTeam, and Critter Control — to stop enforcing noncompete agreements against more than 18,000 employees nationwide. The FTC also sent warning letters to 13 other pest-control industry companies. Industry classification note: Rollins operates in pest control/environmental services. This case could also map to "small-manufacturers" or general business services based on its impact on labor markets, but pest control is primarily an environmental/consumer services industry.

Rollins imposed noncompete agreements on nearly all employees, including low-wage pest-control technicians and customer-service representatives. The agreements typically prohibited working in pest control for two years within a 75-mile radius of any of Rollins' 700+ U.S. locations. Employees had no ability to negotiate and received no extra compensation. Rollins issued hundreds of cease-and-desist letters to former employees and filed multiple lawsuits over alleged breaches.