The Federal Trade Commission has proposed a rule that would ban most non-compete clauses in employment contracts, calling it a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses. The agency estimates that the rule could increase wages by nearly $300 billion per year and expand career opportunities for 30 million workers.
Chair Lina M. Khan said non-compete clauses block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. By ending this practice, the FTCs proposed rule would promote greater dynamism, innovation, and healthy competition. Elizabeth Wilkins, Director of the Office of Policy Planning, said the proposed rule would ensure that employers cant exploit their outsized bargaining power to limit workers opportunities and stifle competition.
https://blog.moginrubin.com/proposed-ftc-rule-would-ban-noncompete-clauses-in-employment-contracts