The Federal Trade Commission (FTC) has announced a final rule banning noncompete clauses nationwide, aiming to promote competition, protect workers’ freedom, and foster innovation. This decision is expected to generate more than 8,500 new businesses each year, raise worker wages, lower healthcare costs, and drive innovation.
Noncompete clauses, which affect nearly one in five Americans, have been criticized for suppressing wages, stifling innovation, and limiting job mobility. The FTC’s rule will ban noncompetes for the vast majority of workers, with existing noncompetes for senior executives remaining in force, but with strict limitations.
