The fine print that follows you out the door: non-compete clauses are spreading

3 hours ago

Non-compete clauses are surprisingly common, affecting 20-33% of private-sector workers across surveyed OECD countries, including low-wage and less-educated workers.
These clauses often extend beyond legal limits, lack compensation, and may be unenforceable, yet they still deter job mobility and entrepreneurship due to perceived risks.
Non-compete coverage is linked to lower job mobility, slower wage growth, and reduced productivity, with a 10 percentage-point increase associated with a 1.9% decline in productivity.
Policymakers can address issues through tailored regulations like earnings thresholds, compensation requirements, or transparency measures, but enforcement and public awareness are crucial.

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