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FTC bans employers from using noncompete clauses

The US Federal Trade Commission (FTC) has banned noncompete clauses in a move to "drive innovation" and protect workers' rights and wages.

The US Federal Trade Commission (FTC) has banned noncompete clauses in a move to "drive innovation" and protect workers' rights and wages, the regulator said in a press release. The Commission found that noncompetes tend to negatively affect competitive conditions in labor markets by inhibiting efficient matching between workers and employers. The FTC said that trade secret laws and non-disclosure agreements (NDAs) are a better way to protect IP, and "employers that wish to retain employees can compete on the merits for the worker's labor services by improving wages and working conditions."

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