FTC wants to ban noncompete agreements

The Federal Trade Commission (FTC) considers noncompete agreements to be exploitative and proposed a new rule Thursday that would prohibit employers in the country from imposing it on their workers.

Noncompete agreements restrict workers from seeking jobs in rival companies for a certain period—usually six months to two years. FTC chair Lina M Khan said noncompetes deprive people of higher wages and better working conditions.

The commission pointed out that around 30 million workers are affected by noncompete agreements, adding that a ban on it could increase wages to almost $300 billion a year.