The US Federal Trade Commission (FTC) has banned noncompete clauses in a move to “drive innovation” and protect workers’ rights and wages, the regulator said in a press release. The new rule will free most new and current employees from such agreements, with the exception of “policy-making” executives earning more than $151,164 per year.
“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism,” said FTC Chair Lina M. Khan. The agency estimated that the new rule will allow the creation of 8,500 new businesses each year, increase worker earnings by $524 per year and lower
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