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The Federal Trade Commission (FTC) estimates that nearly $300 billion in wages could be lost annually due to noncompete agreements. These clauses not only depress wages for those directly affected but also for other workers. The FTC has proposed a federal ban on noncompete clauses, aligning with states that have already rendered them unenforceable. This change is expected to benefit workers by forcing companies to adopt more innovative retention strategies. Noncompetes traditionally prevent employees from working for competitors after leaving a job, often with specified waiting periods, as exemplified by Amazon’s 2018 clause. However, this proposal faces challenges ahead.
