Rule banning non-competes takes effect in September but big businesses, some lawmakers oppose it WSB-TV Channel 2 [Video]

WASHINGTON — A rule proposed by the Federal Trade Commission that would ban nearly all non-competes from employment contracts is supposed to take effect in early September.

When the rule takes effect, companies would no longer be allowed to ban employees from going to a competing business, or starting their own.

While the rule is seen as a boon to workers, and meant to protect them according to the FTC, big businesses, and some lawmakers, are opposed to it and are concerned it could hurt companies.

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Channel 2 Washington Correspondent Samantha Manning was at the Capitol, where lawmakers for and against the non-compete clause ban debated the rule set to take effect.

Employment data shows non-compete clauses affect about 30 million American workers, from doctors to hairstylists.

Companies use the clause in contracts to stop employees from leaving to work for competitors, and even for starting their own businesses.

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