The Federal Trade Commission has proposed a new rule that can potentially change the practice of businesses across the county and affect the economy drastically. This new rule would ban employers from imposing non-compete clauses onto workers with the goal of increasing wages and expanding career opportunities. The FTC projected the ban to “increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans”. Further, the FTC says that the provision would apply to independent contractors and anyone who works for an employer, whether paid or unpaid. This ban could empower workers with the freedom to move around as they please without fear of breaching the non-compete, but this newfound freedom may be to the detriment of businesses.
Follow the link below for more information, and contact the Elon Law Small Business Clinic at businessclinic@elon.edu.