The FTC wants to ban the noncompete clauses ensnaring some tech workers

Illustration of the Capitol building with a blue filter.
Illustration by Alex Castro / The Verge

The Federal Trade Commission is looking to ban noncompete clauses in employment contracts, which companies put in place to prevent employees from going to work for competitors or leaving to start similar businesses. On Thursday, the regulator issued a notice of proposed rulemaking, saying that the clauses hurt innovation and “decrease competition for workers,” which leads to lower wages overall.

While the proposed rule, which you can read here, would benefit workers across industries, it’s especially relevant in tech.

For years, we’ve seen big tech companies attempt to get workers at every level to sign noncompete contracts — Kickstarter’s union fought against them while it was bargaining with the company, Acer sued a former CEO…

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