On April 23, the Federal Trade Commission voted 3-2 to issue a new rule prohibiting the use of non-compete agreements for most U.S. workers. It is estimated that approximately 30 million workers are currently bound by such agreements, which prevent them from changing employers in their industry.
The FTC asserts that non-compete agreements are bad for the labor market, discourage workers from starting their own businesses and suppress salaries. The rule is part of the 2021 Executive Order on Promoting Competition in the American Economy.