FTC Proposes a Ban on Non-Compete Contracts for Employees (1)

The US Federal Trade Commission is proposing a ban on non-compete clauses in employment contracts that keep workers from switching jobs — a sweeping rule likely to affect millions of Americans.

The proposal would bar employers from entering into or enforcing such clauses with employees or independent contractors and require companies to nullify any existing ones within six months. The ban would exempt companies that want to require an owner or partner selling a business from immediately re-entering the field.

“Non-competes are bad for workers and undermine labor competition,” FTC Chair Lina Khan told reporters in a news conference announcing ...