Under Trump, the Federal Trade Commission is abandoning its ban on noncompetes
4 days ago
- #FTC
- #labor rights
- #noncompete agreements
- The FTC under Trump is reversing the ban on noncompete agreements, a key policy from the Biden era.
- Noncompete agreements prevent workers from joining competitors or starting their own businesses within certain limits.
- A federal judge in Texas halted the FTC's ban, ruling it exceeded the agency's authority.
- The Trump administration paused the appeal process, leading to the FTC voting 3-1 to dismiss the appeal and vacate the rule.
- FTC Chair Andrew Ferguson criticized the ban as overreach, though he acknowledged noncompetes can be harmful.
- About 30 million U.S. workers are bound by noncompete agreements, affecting wages and job mobility.
- The FTC plans targeted enforcement against abusive noncompetes under the Sherman Act instead of a blanket ban.
- Critics argue enforcement alone is insufficient to protect workers nationwide.
- Elizabeth Wilkins, a key architect of the original ban, warns enforcement will fail without a clear prohibition.
- A case study highlights how noncompetes trap workers, like Rebecca Denton in Colorado, who had to leave her field temporarily.