FTCs noncompete ban expected to face legal challenges | KLRT [Video]

WASHINGTON (NEXSTAR) – About 30 million Americans can’t leave their jobs and go to work for a competing company because of something called a ‘noncompete’ agreement.

“We’re talking about security guards, hairdressers, we’re talking about truckers, and a host of other people,” U.S. Federal Trade Commission Director of Public Affairs Douglas Farrar said. 

Farrar says that’s not right.

“This is a real restriction on Americans’ economic freedom,” Farrar said. 

The FTC voted 3-2 on Tuesday to ban noncompete clauses for most workers. Farrar says the new rule will spur competition, higher wages and new business growth.

“We’re going to see 8,500 new businesses formed every year. We’re going to see $524 put back in the pockets of most working Americans,” Farrar said. 

But businesses are not happy with the rule. One of the largest business organizations, the U.S. Chamber of Commerce, is already suing the FTC. 

The Chamber’s Chief Policy Officer Neil Bradley says the …