Across the Board: The Battle Intensifies Over Noncompete Clauses as Federal Rule Faces Legal Challenge
The extensive use of noncompete clauses, once reserved for high-ranking executives with access to sensitive trade secrets, has controversially trickled down to affect nearly every tier of the workforce, including low-wage positions and rank-and-file employees. An academic study estimates that these restrictions impact around 30 million American workers, nearly one-fifth of the nation’s workforce, raising significant concerns about their effects on worker mobility and wage levels. Originally intended to protect businesses by preventing the spread of proprietary knowledge, noncompete clauses are increasingly appearing in the employment contracts of individuals who do not possess confidential information, … Read more