- Specifically, the final rule provides that it is an unfair method of competition—and therefore a violation of Section 5 of the FTC Act—for employers to enter into noncompetes with workers after the effective date.
- Fewer than 1% of workers are estimated to be senior executives under the final rule.
- Specifically, the final rule defines the term “senior executive” to refer to workers earning more than $151,164 annually who are in a “policy-making position.”
- Reduced health care costs: $74-$194 billion in reduced spending on physician services over the next decade.
- New business formation: 2.7% increase in the rate of new firm formation, resulting in over 8,500 additional new businesses created each year.
- Rise in innovation: an average of 17,000-29,000 more patents each year for the next ten years.
- This reflects an estimated increase of about 3,000 to 5,000 new patents in the first year noncompetes are banned, rising to about 30,000-53,000 in the tenth year.
- This represents an estimated increase of 11-19% annually over a ten-year period.
- The average worker’s earnings will rise an estimated extra $524 per year.
The Federal Trade Commission develops policy initiatives on issues that affect competition, consumers, and the U.S. economy. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Follow the FTC on social media , read consumer alerts and the business blog , and sign up to get the latest FTC news and alerts .
