FTC Bans Worker Noncompete Clauses

CHARLOTTE, N.C. — Millions of Americans could be impacted by a new decision to ban noncompete clauses. According to the Federal Trade Commission, eliminating such clauses could boost earnings for the average worker by $524 per year.

The agency estimates more than 30 million Americans are currently bound by noncompete clauses.

The change is already facing backlash, which could delay it from taking effect. The U.S. Chamber of Commerce says it will sue the FTC. Calling the move an unlawful and a “blatant power grab” that will undermine businesses’ ability to remain competitive.

The ban would apply nationwide and would override state laws regarding noncompete agreements.