LAW & POLITICS, POLICY & REFORMS
January 27, 2026
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US FTC Moves to Ban Noncompete Clauses: What the Rule Changes, Why It Was Passed, and What Happens Next

The US Federal Trade Commission (FTC) has finalized a landmark rule banning most noncompete clauses in employment contracts, marking one of the most significant labor market interventions in decades and setting up a major legal and political showdown. The rule, approved by the FTC in a 3–2 vote, prohibits employers from enforcing noncompete agreements against […]