Breaking News: US Federal Trade Commission Bans Non-Compete Agreements Nationwide

The US Federal Trade Commission has decided to ban non-compete agreements nationwide. This measure was voted on by the FTC commissioners in January 2023, with a final vote of 3-2. The goal of this ban is to prevent wage suppression and promote innovation in various industries.

Non-compete agreements have become increasingly common due to limited oversight and a decrease in unionisation. It is estimated that around 30 million workers are currently bound by these clauses. These agreements can limit workers’ personal freedoms and hinder competition in product and service markets, according to FTC chair Lina Khan.

The agency received over 26,000 public comments on the matter before making its decision to ban non-compete agreements. However, industry groups are opposed to the ruling, arguing that it is too severe and will lead to increased business costs and may compromise trade secrets.

Andrew Ferguson, a Republican FTC commissioner, argued that the agency did not have the authority granted by Congress to enforce such a ban. This decision has sparked controversy among stakeholders and it remains to be seen how it will impact the business landscape in the US.