Battles Over Noncompete Clauses Poised to Heat Up in Statehouses

The US Federal Trade Commission’s nationwide ban on noncompete clauses is set to spur more state action to limit the restrictive covenants, adding momentum to an already expanding landscape of these laws.

The national effort to ban noncompete provisions that prohibit workers from switching jobs within an industry has already prompted some states to change their laws—and more are likely to follow suit, antitrust enforcers and employment lawyers say.

“The FTC’s proposal has changed the conversation, including in states,” said Evan Starr, an associate professor at the University of Maryland who researches noncompetes and their impact. “I would expect there ...