The Federal Trade Commission has announced a major decision to ban noncompete agreements for most of the U.S. workforce. This ruling will impact an estimated 30 million individuals who were previously restricted by contracts that limited their ability to switch jobs within their industry or start their own businesses. Labor advocates are celebrating this decision, viewing it as a significant victory for workers and arguing that these agreements stifle competition and limit earning potential.
In a statement following the panel’s 3-2 vote, FTC Chair Lina M. Khan expressed her support for the ban. She believes that this new rule will give Americans the freedom to pursue new job opportunities, start their own businesses, and bring innovative ideas to market. This decision is seen as a positive step towards empowering workers and allowing them greater flexibility in their careers.
