The Federal Trade Commission banned 'non-compete' agreements, to take effect in August. But it was only a 3-2 vote, and business groups are going to sue to maintain their ability to have employees sign non-compete contracts.
According to the article, business groups say non-compete agreements "protect trade secrets" and "promote competitiveness," while the FTC says banning non-competes would "increase worker earnings by up to $488 billion over the next decade and will lead to the creation of more than 8,500 new businesses each year."
I wonder if that $488 billion can be realized over the next decade with artificial intelligence, not mentioned in the article, advancing so fast. Creation of 8,500 new businesses? The trend for decades is few businesses and more people working for large companies than small companies. I suppose you could blame non-compete agreements for that, in which case the claim that eliminating non-compete agreement creating new businesses would be true. Also when I hear "trade secrets," I think advanced technology, but the article claims Democrats claim non-compete agreements are used "even in lower-paying service industries such as fast food and retail."
US bans worker 'noncompete' agreements as business groups vow to sue - Reuters
