The FTC’s proposed ban on noncompete agreements matches what voters want

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The Federal Trade Commission (FTC) proposed on Jan. 5 to ban noncompete clauses, “which hurt workers and harm competition.” If adopted after a 60-day public comment period, this would provide a much-needed boost to entrepreneurship and innovation in America. It also would address a concern on which there is unity among U.S. voters at a time of deep political polarization.

Noncompete agreements may seem like a niche topic, but they have a major impact on the U.S. economy and jobs. About one in five Americans is held back by noncompete agreements or restrictions imposed by employers. As the FTC stated in proposing the ban, “The new proposed rule could increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans.” This issue matters to the public because young businesses create nearly all new job growth in America.