The Trump administration dropped its legal defense of an aggressive Biden-era ban on employee noncompete agreements, marking a return to the status quo for federal policy on labor competition.

In court filings submitted Friday, the Justice Department asked federal appeals courts in New Orleans and Atlanta to dismiss appeals defending the Federal Trade Commission’s 2024 rule that prohibited noncompete clauses in employment contracts. That rule, enacted under former President Joe Biden, was challenged by industry groups and struck down by two federal judges earlier this year.