The Federal Trade Commission (FTC) voted 3-2 on Tuesday to ban non-compete agreements that prevent tens of millions of employees from working for competitors or starting a competing business after they leave a job.
From fast food workers to CEOs, the FTC estimates 18 percent of the U.S. workforce is covered by non-compete agreements — about 30 million people.
The final rule would ban new non-compete agreements for all workers and require companies to let current and past employees know they won’t enforce them. Companies will also have to throw out existing non-compete agreements for most employees, although in a change from the original proposal, the agreements may remain in effect for senior executives.
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