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The FTC's Non-Compete Ban: What Lies Ahead?

Clay Everett, Heather Marie Burke, Koren W Wong-Ervin, Jee-Yeon Kim Lehmann, and Carolyn Danielle Jeffries

The debate on non-competes has taken center stage in light of the FTC's recent vote. At both the federal and state levels, there is growing debate over the potential procompetitive and anticompetitive effects of non-competes on businesses, employees, and innovation. Non-compete agreements, which restrict employees from working with competitors for a certain period after leaving a company, have long been used by businesses to protect trade secrets and retain valuable talent. However, they have also been criticized for limiting workers' mobility and suppressing wages.

What are the legal and economic implications of federal non-compete ban on practitioners, businesses, and the broader economy?