FTC Delivers HUGE Win for Workers, Proposed Ban on Noncompete Clauses

The FTC has proposed a rule to ban noncompete clauses.

“Employers would be banned from making staff sign noncompete clauses, according to proposed rules that federal regulators say would boost worker pay and end a major drag on people who wish to change jobs, and stay in the same industry.

The Federal Trade Commission released the proposed rules on Thursday designed to end worker noncompete clauses, which typically prevent the person signing it from leaving their job in order to start a rival business, or simply take a job with a competitor.

In theory, the clauses are supposed to protect businesses from former employees poaching clients, among other nefarious sales tactics. But the overly restrictive clauses are popping up in all kinds of work in for high- and low-paying jobs, ranging from warehouse workers and hairstylists to doctors and business executives, the FTC said.”

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