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Power At Work

Power At Work Blogcast #41: BREAKING NEWS BLOGCAST: FTC Kills Non-Compete Agreements

Apr 25, 2024
Senior Fellow Seth Harris and Director Hannah Garden-Monheit discuss FTC's ban on non-compete agreements, its legal reasoning, impact on labor markets, worker empowerment, and expected legal challenges. They explore how the ban will increase competition, improve worker power, and face potential litigation hurdles.
47:23

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Quick takeaways

  • FTC banned non-compete clauses to increase labor market competition.
  • New rule promotes entrepreneurship, innovation, and economic growth by banning non-compete agreements.

Deep dives

Prohibition of Non-Compete Clauses

The Federal Trade Commission issued a final rule prohibiting employers from including non-compete clauses in employment agreements, voted three to two. This move was encouraged by President Biden's executive order in July 2021 and supported by unions and worker advocates. The rule aims to prevent unfair competition and address the harm non-competes pose to workers by restricting their job mobility.

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