FTC bans noncompete agreements, making it easier for workers to quit. Here's what to know.
CBSMAY 2024
FTC Bans Noncompete Agreements, Could Impact Millions of Workers
Image copyright: Chip Somodevilla/Staff/Getty Images News via Getty Images
The Spin
Narrative A
Noncompete contracts rarely protect company secrets. In fact, their primary function is to shackle employees to their existing companies by forcing them to switch careers or move far away to find a new job if they seek to leave — something most people can't afford to do. By prohibiting employees from starting their own businesses, these contracts also weaken competition. If we want employees and entrepreneurs to thrive, these agreements should be banned at all levels of business.
Narrative B
Despite what these anti-business government officials claim, noncompete clauses actually promote competition and help, not hinder, employees. This is also an egregious, unconstitutional power grab by three unelected regulators who think they can decide what is and isn't a competitive market. The FTC has never been granted such overarching authority, which is why actual American business leaders will fight this in court.