FTC Announces Rule Banning Noncompetes

The FTC:

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.

“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” said FTC Chair Lina M. Khan. “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”

As I wrote a year ago, I used to think that noncompete agreements (“agreements”?) were mainly a thing in the tech industry. But their use became so rampant that even sandwich shop chains were requiring them.

Tuesday, 23 April 2024