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Research shows that non-compete agreements make labor markets less competitive, reduce wages and reduce labor mobility. [3] [1] While non-compete agreements may incentivize company investment into their workers and research, they may also reduce innovation and productivity by employees who may be forced to leave a sector when they leave a firm.
A 2023 petition to the FTC to ban non-compete agreements estimated that about 30 million workers (about 20% of all U.S. workers) were subject to a noncompete clause. [3] While higher-wage workers are comparatively more likely to be covered by non-compete clauses, non-competes covered 14 percent of workers without college degrees in 2018. [4]
“Attempting to ban non-compete clauses in all employment circumstances overturns well-established state laws, which have long governed their use and ignores the fact that, when appropriately ...
The U.S. Federal Trade Commission has proposed a rule that would ban companies from entering or attempting to enter a non-compete agreement with a worker. The rule banning non-compete clauses in...
The FTC issued a rule banning noncompete clauses in employment contracts in the U.S. in April, and the action was immediately challenged in court. On Tuesday, Judge Ada Brown of the U.S. District ...
Employees continue to receive their normal pay during garden leave and must adhere to their conditions of employment, such as confidentiality and non-compete clause, at least until their notice period expires. [4] An employer's main benefit from a garden leave is the ability to protect their businesses. [5]
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