On 23 April 2024 the US Federal Trade Commission, chaired by Lina Khan, voted 3-2 along party lines to issue a final rule banning most noncompete clauses for workers, which the agency estimated bound roughly 30 million Americans. The FTC argued the clauses suppress wages, mobility and new-business formation. The rule was widely covered as a major labour-market intervention but was later stayed and, in August 2024, struck down by a federal court in Texas, so it did not take nationwide effect.
On 23 April 2024 the US Federal Trade Commission, chaired by Lina Khan, voted 3-2 along party lines to issue a final rule banning most noncompete clauses for workers, which the agency estimated bound roughly 30 million Americans. The FTC argued the clauses suppress wages, mobility and new-business formation. The rule was widely covered as a major labour-market intervention but was later stayed and, in August 2024, struck down by a federal court in Texas, so it did not take nationwide effect.
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By aiming to raise wages and job mobility, the rule was intended to ease household cost-of-living pressure; the effect is hedged because the rule was struck down before taking effect.
