What an FTC Noncompete Ban Could Mean for Workers and Businesses
Research shows that noncompete agreements depress worker wages and mobility and make it harder for new businesses to start, scale, and hire talent. So why are they everywhere?
In January, the U.S. Federal Trade Commission proposed a ban on noncompete clauses in employment contracts. In addition to barring new noncompete agreements with employees and independent contractors, the rule would require employers to rescind existing ones. To understand what a federal ban could mean for workers and businesses, why it’s facing opposition, and how employers can prepare, we spoke with Evan Starr, an associate professor of management ...
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