The Federal Trade Commission is weighing a national ban on non-compete agreements – a move that would greatly expand the agency’s power over businesses if it survives a court challenge.
At the moment, agreements limiting an employee from going to work for an employer’s competitor are regulated at the state level, with individual jurisdictions allowed to create their own laws governing the practice.
Using that authority, the District of Columbia has essentially banned non-compete agreements, while in Virginia the ban can only apply to employees making more than $67,000 per year.
The Federal Trade Commission (FTC) wants to upend that patchwork in favor of a national ban.