FTC Enacts Nationwide Ban on Noncompete Agreements

The Federal Trade Commission's new rule aims to enhance worker mobility and increase competition, effective in 120 days unless challenged in court.

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.