The Federal Trade Commission has made a significant decision by banning noncompete agreements for the majority of the U.S. workforce. This new ruling impacts an estimated 30 million individuals who were previously restricted by contracts that limited their ability to switch jobs within their industry or start their own businesses. Labor advocates welcomed the decision, viewing it as a major win for workers and arguing that these agreements stifle competition and limit earning potential.
FTC Chair Lina M. Khan expressed her support for the ban in a statement following the panel’s 3-2 vote. She believes that this new rule will give Americans the freedom to pursue new job opportunities, start their own businesses, and bring innovative ideas to market. This decision is seen as a positive step towards empowering workers and allowing them greater flexibility in their careers.