"Unreasonable noncompete agreements have proliferated for too long in the dark, said Kelse Moen, deputy director of the FTC's Bureau of Competition and co-chair of the agency's Joint Labor Task Force. With the assistance of the employees and workers most burdened by them, the Trump-Vance FTC intends to uproot the worst offenders and restore fairness to the American labor market."
"In April 2024, the FTC under Chair Lina Khan finalized a nationwide ban on noncompetes, following a 2021 executive order directing the agency to curb their use. At the time, Khan argued the terms kept wages low and stifled innovation, estimating that banning them could result in 8,500 new startups and up to 29,000 additional patents annually over the next decade. But in August 2024, a U.S. district court judge in Texas blocked the FTC's rule."
Unreasonable noncompete agreements restrict workers from joining competitors or starting rival businesses after leaving employers and have proliferated. The FTC plans to gather information on noncompetes’ scope, prevalence and effects to guide future enforcement. The Trump-Vance FTC intends to pursue the worst offenders with assistance from affected employees and workers and to restore fairness to the labor market. A prior nationwide ban on noncompetes was finalized in April 2024 and estimated to boost startups and patents, but a Texas U.S. district court blocked that rule in August 2024. Public comments on the FTC’s request for information are due by Nov. 3.
Read at www.housingwire.com
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