FTC Bans Noncompete Clauses That Restrict Job Switching
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FTC Bans Noncompete Clauses That Restrict Job Switching

The Federal Trade Commission on Tuesday banned employers from using noncompete contracts to prevent most workers from joining rival firms‚ achieving a policy goal that is popular with labor but faces an imminent court challenge from business groups. The measure‚ approved by the agency’s Democratic majority on a 3-to-2 vote‚ marks the first time in more than 50 years that FTC officials have issued a regulation to mandate an economywide change in how companies compete. The commission has...