Controversy Surrounds Noncompete Clauses in Corporate America
Major business groups, including the U.S. Chamber of Commerce and a leading human resources group, have asked the Federal Trade Commission (FTC) to stand down or shrink its proposal to ban noncompete agreements. On the other side, top labor unions and consumer advocates have argued in favor of barring employers from limiting where their staffers can take jobs or start businesses after leaving. The outcome of the battle will affect large swaths of the U.S. workforce, with roughly 30% of private sector employers currently using noncompete agreements for all their workers.