NYT - The Mostly Persuasive Logic Behind the New Ban on Noncompetes

The Federal Trade Commission used two very different rationales to get to its near-total ban this week on noncompete agreements. One of them is a no-brainer. The other is provocative but not completely obvious. I guess I’d call it a brainer.

As you may have read, the F.T.C. commissioners on Tuesday voted3 to 2 on a final rule against noncompete clauses in employment contracts, which limit the ability of an employee to quit and immediately go work for a rival. The commission determined that they are an “unfair method of competition.” The rule takes effect 120 days after its publication in the Federal Register, unless a court blocks it before then.