Business News
FTC Bans Most Noncompete Clauses In Move Affecting 30M Workers
The Federal Trade Commission has announced that employers can’t force their employees to not work for rival companies.
This means prohibits most employers from using noncompete clauses.
It affects approximately 30 million workers across various industries, including technology, media, and personal services.
This measure would boost job creation, raise wages, and stimulate competition.
However, it is expected to face legal challenges from companies concerned about protecting confidential information and trade secrets.
The new rule prevents noncompete agreements, which typically restrict employees from joining competitors for a certain period after leaving a company.
This decision, voted in by a 3-to-2 margin, comes after the FTC received over 20,000 public comments since proposing the rule in January 2023.