FTC Announces Rule Banning Most Noncompete Clauses
The Federal Trade Commission (FTC) has issued a final rule that bans noncompete clauses in employment contracts across the United States. The rule affects approximately 18% of U.S. workers—totaling 30 million individuals—who are currently bound by noncompetes. This measure is designed to boost job mobility and wage growth by removing barriers that restrict employees from transitioning between competing roles. The decision has triggered considerable debate and is currently facing legal challenges. Critics argue the ban could harm business competitiveness and stifle innovation. Furthermore, the U.S. Chamber of Commerce contends that the FTC does not have the regulatory authority to enact such changes.