FTC Announces Rule Banning Noncompetes

Earlier this week, the Federal Trade Commission took a decisive step to boost competition across the country. They put out a new rule that bans noncompete agreements nationwide. This move safeguards workers' basic right to switch jobs, encourages fresh ideas, and supports the birth of new businesses.

FTC Chair Lina M. Khan stated, “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.” She also said, “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.”

Read the FTC press release below:

https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes