FTC Bans Non-Compete Agreements
The Federal Trade Commission (FTC) has banned companies from using non-compete agreements to prevent workers from switching jobs, a decision sparking controversy among businesses. While historically targeting skilled workers and executives, non-competes now affect employees across various sectors, including low-wage jobs. The FTC argues that non-competes suppress wages and stifle innovation, and existing laws already protect sensitive information.
Despite the backlash from businesses, the ruling is expected to stand, with legal challenges likely. Existing non-compete agreements will be nullified, except for high-earning executives, once the ruling takes effect in four months. Employees are advised to renegotiate contracts and explore options, as the era of non-competes comes to an end.