
America could ban noncompete clauses by the end of this year. The Federal Trade Commission has proposed to void existing agreements and ban companies from including any in future contracts.
It’s a seemingly simple change that could have massive repercussions.
Economists suspect noncompetes are one reason middle-class wages have stagnated and productivity growth has stalled. At least one in five — 30 million — workers are bound by them.
Once limited to high-paid professionals with access to sensitive company information, noncompete clauses are now routinely inserted into contracts for even fast-food workers and hairstylists.
Paired with weak protections against dismissal, noncompetes give American employers too much power in labor relations. (more…)














