You know those pesky noncompete agreements that you’re always asked to sign when you start a new job? You can kiss them goodbye.
The FCC voted on Tuesday April 23, 2024 to ban nearly all noncompetes, which typically prevent workers from joining competing businesses or launching ones of their own.
According to FCC Chair Lina Khan “We heard from employees who, because of noncompetes, were stuck in abusive workplaces. One person noted when an employer merged with an organization whose religious principles conflicted with their own, a noncompete kept the worker locked in place and unable to freely switch to a job that didn’t conflict with their religious practices.”
The FTC estimates about 30 million people are bound by noncompetes. It says the policy change could lead to increased wages totaling nearly $300 billion per year by encouraging people to swap jobs freely.
So next time an employer asks you to sign a noncompete agreement you can tell them what they can go do with it.
FTC bans most noncompete agreements between employers and workers