On April 23, the Federal Trade Commission voted 3-2 to adopt a final rule banning noncompete agreements. The FTC defines a "non-compete clause" broadly as a term or condition of employment that prohibits a worker from, or penalizes a worker for, seeking or accepting work from a different employer or operating a business at the conclusion of current employment. Non-compete clauses have long been defended as a way to prevent employees from taking company trade secrets and intellectual property to competing firms; the FTC now says the provisions are a form of unfair competition that impermissibly limits employee job opportunities.
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