AXIOS April 23, 2024
The Federal Trade Commission voted 3-2 on Tuesday to ban noncompete agreements, which prevent workers from taking positions with competitors for a period of time after they leave a job.
Why it matters: The ban could be a win for workers, particularly at the low end of the income scale.
- Critics of these agreements say they stifle innovation and wage growth by restricting workers’ ability to take new jobs that pay higher wages or offer some other opportunity. They also make it tougher for employers to hire strong talent, lessening competition.
- Some states have laws limiting noncompetes to higher-income folks or banning them altogether, but most don’t.
What they’re saying: “The FTC estimates that the final rule…will lead...
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