FTC Bans Worker Noncompete Clauses
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FTC bans employers from using noncompete clauses
The US Federal Trade Commission (FTC) has banned noncompete clauses in a move to "drive innovation" and protect workers' rights and wages, the regulator said in a press release. The new rule will free most new and current employees from such agreements, with the exception of "policy-making" executives earning more than $151,164 per year. "Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism," said FTC Chair Lina M. Khan. The agency estimated that the...
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FTC bans most noncompete agreements between employers and workers
The Federal Trade Commission has voted to ban employment agreements that typically prevent workers from leaving their companies for competitors, or starting competing businesses of their own.
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New federal rule bans ‘noncompete’ agreements for most workers
Noncompete agreements are banned in three states, including California, and some opponents of noncompetes argue that California's ban has been a key contributor to that state's innovative tech economy.