Poll question: The non-compete clause

The Federal Trade Commission is proposing a rule to bring an end to the non-compete clause.

The proposal would ban employers from imposing non-compete clauses to the contracts of employees.

According to the FTC’s reasoning: “Research has shown the use of non-compete clauses by employers has negatively affected competition in labor markets, resulting in reduced wages for workers across the labor force--including workers not bound by non-compete clauses," the FTC said in its Notice of Proposed Rulemaking. "This research has also shown that, by suppressing labor mobility, non-compete clauses have negatively affected competition in product and service markets in several ways.”

Not surprisingly, there are strong voices of objection. A headline in the Human Resources Director web site reads: “Non-compete clause ban will have ‘disastrous effect’ on small business.”

It could be years, or longer, before any such ban takes effect. Until then, what do you think? Here’s the latest HBSDealer poll question.