Competition Law Insight
Protecting worker freedom
Blanket ban on employment non-competes across the US
by Macrui Dostourian
Reasoning that non-compete agreements constitute an unfair method of competition and negatively affect competition in labour markets by inhibiting "efficient matching between workers and employers", the US Federal Trade Commission (FTC) has issued a final rule that bans non-compete clauses across the entire country. The ban on non-competes protects workers' "fundamental freedom" to change jobs, the enforcer said.