All About Non-Compete Clauses the FTC Wants to Ban: QuickTake

Contractual clauses barring workers from competing with their former employers have existed for centuries, with the first known legal challenge to one going back to 1414 London. The provisions have become increasingly common in the US, with an estimated 20% of workers — roughly 30 million Americans — subject to them today. Employers argue that noncompetes help protect their investments in employees. Critics say they harm workers. The US Federal Trade Commission has proposed prohibiting them altogether.

1. What is a noncompete clause?

It’s a provision that prohibits employees, during or after their employment, from working for an employer’s competitors ...