The FTC proposes banning non-compete agreements

Business Business News

The agency will accept public comment on the proposal for 60 days and consider those submissions before it issues a final version of the rule.

Who doesn’t enjoy a little healthy competition? Employers, maybe?

Thanks to the Federal Trade Commission, non-compete agreements are going away, leaving employers with fewer legal means of keeping workers from switching jobs or starting their own business.

FTC chair Lina Khan says, “Non-competes are bad for workers and undermine labor competition. When one set of workers are locked in place, that reduces churn overall.”

This affects about one in five Americans, especially those in technology and healthcare. The proposed ban would nullify existing clauses. And the FTC even estimates $300 billion in wage increases for about 30 million American employees. 

– Vikki Locke, C2 Communications, The Southwest Florida 100