WASHINGTON – U.S. companies would no longer be able to bar employees from taking jobs with competitors under a rule approved by a federal agency Tuesday, though the rule is sure to be challenged in court.
The Federal Trade Commission voted Tuesday 3-2 to ban measures known as noncompete agreements, which bar workers from jumping to or starting competing companies for a prescribed period of time. According to the FTC, 30 million people — roughly one in five workers — are now subject to such restrictions.
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The agency received about 26,000 comments on the proposal, most of them in favor. The rule, which doesn't apply to workers at non-profits, is to take effect in six months unless it is blocked by legal challenges.
Business groups have criticized the measure as casting too wide a net by blocking nearly all noncompetes. They also argue that the FTC lacks the authority to take such a step.
Do you feel like this is a push in a good direction for your employment search or will it cause more issues?
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