04/23/2024
Earlier today, the FTC voted 3-to-2 on a near total ban of worker non-competes across the US.
Such clauses affect around 30 million Americans (roughly 1 in 5), making it difficult for them to freely switch jobs in their industries, stifling wages and undermining fair competition, according to the FTC.
Today's ruling would ban new non-compete agreements and void existing agreements six months after the rule kicks in. The only exception for existing non-competes would be for execs who make $151,164 annually and hold a "policy making position."
The US Chamber of Commerce has already announced plans to sue the FTC following the vote, setting up a lengthy legal battle. The Chamber views the FTC's proposal as an overstep of their authority.
The FTC estimates that a ban of non-competes would boost US wages and earnings by $488 billion over the next 10 years.
📸 : Getty
