Overview

• FTC's historic decision bans noncompete agreements for all workers, including senior executives, to promote fair labor practices.
• The ban, expected to increase wages by up to $488 billion over the next decade, faces potential legal challenges from business groups.
• Noncompete clauses have been criticized for suppressing wages, stifling innovation, and limiting worker mobility across various industries.
• Existing noncompetes will become unenforceable once the rule is implemented, with exceptions for certain senior executives.
• The rule could lead to increased entrepreneurship and innovation, similar to effects seen in California, which has already banned noncompetes.