FTC bans non-compete clauses

The Federal Trade Commission today published a final rule banning non-compete clauses in contracts.

“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once non-competes are banned,” FTC Chair Lina M. Khan said in announcing the rule.

“The FTC’s final rule to ban non-competes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”

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