FTC bans noncompete agreements for many Americans but legal battle looms that would delay change
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The Federal Trade Commission (FTC) has voted to ban noncompete agreements, which could affect up to 30 million Americans. The ban, approved 3-2, aims to give workers the freedom to pursue new jobs, start businesses, or bring new ideas to market. Noncompete agreements are clauses in employment contracts that restrict employees from working for rival companies within a certain geographic area or time frame. The FTC rule will take effect in 120 days, but a legal battle is expected to delay its implementation. Pro-business groups, including the U.S. Chamber of Commerce, have opposed the ban and plan to sue the FTC. The AFL-CIO, the largest union organization in the U.S., supports the ban, stating that noncompete agreements trap workers, drive down wages, and stifle competition. The ban would apply to all workers entering new employment agreements, while existing agreements would become unenforceable. There is an exception for senior executives earning more than $151,164 per year. The FTC estimates that the ban could increase workers' combined wages by up to $488 billion over the next decade.

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https://abcnews.go.com/Politics/ftc-bans-noncompete-agreements-americans-legal-battle-looms/story?id=109546974