On June 21, 2023, the Federal Reserve Bank of Minneapolis issued a report entitled “New data on non-compete contracts and what they mean for workers” that calls into question the assumptions made by the Federal Trade Commission (FTC) in its recent rulemaking efforts.[1]
The report begins by stating what we have been saying for a long time: that “relatively little survey evidence [is] available” about the actual effect of noncompetes on workers. In other words, it is not that there is substantial evidence that noncompetes help workers (although there are studies showing that they can in certain circumstances), but rather that the data is slim and, contrary to what the FTC and the media might lead the public to believe, there is likewise not settled evidence that noncompetes harm workers. As the Minnesota Fed points out, “[t]he recent explosion of public discussion about non-competes has made clear the need for better and more systematic data collection.”
Blog Editors
Recent Updates
- Health Care Non-Competes: 2025
- Wyoming Joins the List of States Banning Some Noncompete Agreements
- Arkansas Prohibits Noncompetes for Physicians
- New York State Proposes Bill to Ban Noncompetes Except for Highly Compensated Workers and in Sales of Businesses
- Texas Joins List of Legislatures Seeking to Ban Noncompete Agreements