FTC Bans Noncompete Agreements That Restrict Job Switching

April 30, 2024 by Dave Michaels and Lindsay Ellis

WASHINGTON—The Federal Trade Commission on Tuesday banned employers from using noncompete contracts to prevent most workers from joining rival firms, achieving a policy goal that is popular with labor but faces an imminent court challenge from business groups.

The measure, approved by the agency’s Democratic majority on a 3-to-2 vote, marks the first time in more than 50 years that FTC officials have issued a regulation to mandate an economywide change in how companies compete. The commission has historically operated like a law enforcement agency, investigating and suing individual companies over practices or deals deemed to violate the law.

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Originally Posted at The Wall Street Journal on April 23, 2024 by Dave Michaels and Lindsay Ellis.