F.T.C. Bans Noncompete Clauses - The New York Times
▻https://www.nytimes.com/2024/04/23/business/noncompete-clause-ban.html
The rule would prohibit companies from limiting their employees’ ability to work for rivals, a change that could increase competition and boost wages.
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J. Edward Moreno
By J. Edward Moreno
April 23, 2024, 3:42 p.m. ET
The Federal Trade Commission on Tuesday banned employers from limiting their workers’ abilities to work for rivals, a sweeping change that the agency says could help raise wages and increase competition among businesses.
The move bars contracts known as noncompetes, which prevent workers from leaving for a competitor for a certain amount of time, in most circumstances. The agency has said the proposal would raise wages and increase competition.
The proposal was approved by the agency in a 3-2 vote. Commissioners Melissa Holyoak and Andrew N. Ferguson, two Republicans, voted against the measure.
This is a developing story. Please check back for updates.