New US rule would ban employers from using ‘noncompete’ agreements

FTC votes to ban measures which bar workers from jumping to or starting competing companies for a prescribed period of time

US companies would no longer be able to bar employees from taking jobs with competitors under a rule approved by a federal agency on Tuesday, though the rule is sure to be challenged in court.

The Federal Trade Commission voted 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.