FTC looks to prohibit non-compete agreements
The U.S. Federal Trade Commission (FTC) is proposing a ban on non-compete agreements that prevent workers from moving to another company or starting a business in the same field, a decision that could affect roughly 30 million Americans. FTC chair Lina Khan argued that non-compete restrictions drive down wages and prevent better working conditions, estimating that the ban could increase workers’ earnings by $300 billion per year. The ban would only apply to employees, exempting companies that look to bar an ownership partner from selling a business before immediately founding or joining a competitor. The agency will allow public comment on the proposal for 60 days before moving to make it final. Then, companies will have six months to terminate existing non-compete clauses.