The Federal Trade Commission (FTC) has recently voted to ban noncompete agreements, which have become increasingly common in various industries. These agreements typically prevent employees from working for competitors for a certain period after leaving a job, aiming to safeguard trade secrets and investments made in employees.
Noncompete agreements were initially used to protect high-level executives but have expanded to include lower-wage employees in sectors like fast-food and retail. The FTC's decision to prohibit new agreements and enforce existing ones starting September 4 has sparked controversy among businesses and workers.
