Commissioners approved the historic regulation on the grounds that noncompetes stifle competition for workers. A legal challenge is all but certain.

The FTC’s three Democratic members were in favor of adopting the regulation, while its two Republican members were against it.

…

“The FTC estimated that the ban would boost wages by between $400 billion and $488 billion over 10 years.”

Employers are required to tell people that existing noncompetes are void:

The new rule makes it illegal for employers to include the agreements in employment contracts and requires companies with active noncompete agreements to inform workers that they are void. The agency received more than 26,000 comments about the rule after it was proposed some 16 months ago. The rule will take effect after 120 days, although business groups have promised to challenge it in court, which could delay implementation.

New York Times coverage for comparison

  • Cosmic Cleric@lemmy.world
    0·
    7 months ago

    From the article…

    The FTC’s three Democratic members were in favor of adopting the regulation, while its two Republican members were against it.

    … and …

    The FTC’s rule does not include a salary threshold, but it has an exception for noncompetes when a business is sold.

    The final rule also allows existing non-competes to be enforced for senior executives. But all other such contracts would be rendered unenforceable when the rule is implemented

    Anti Commercial-AI license (CC BY-NC-SA 4.0)

    • fidodo@lemmy.worldEnglish
      0·
      7 months ago

      The FTC’s three Democratic members were in favor of adopting the regulation, while its two Republican members were against it.

      Not surprising in the least. Of all the Republican hypocrisy their attitude towards workers using their value to increase their earnings is one of the worst. They claim that they support self reliance and building yourself up, but stuff like this shows that it’s clearly a lie. They support businesses maximizing their earnings by charging what the market will bear, but as soon as a worker tries to do the exact same thing they lose their God damn minds.

      • John Richard@lemmy.world
        01·
        7 months ago

        The Republicans would reinstate child labor and child marriage in a heartbeat if they could get away with it. In fact, they do get away with it in some of their states.