FTC Issues Ruling That Would Ban Non-Compete Agreements

A major ruling could potentially have ramifications on WWE and the wrestling world, but the extent of the impact is unclear.

On April 23, the Federal Trade Commission issued a final rule making it illegal for employers to mandate workers to sign non-compete agreements in any scenario. The ruling also voids nearly all existing non-competes.

The ruling came as the result of a vote, and it would void existing non-compete agreements for everyone other than senior executives. It was noted that the ba will come after a 180-day period that will allow for-profit companies to enter compliance. Over 26,000 companies were submitted on the rule and 25,000 of them supported the ban.

FTC chair Lina Khan discussed the rule in an interview with More Perfect Union.

“Right now workers are stuck in place because of these noncompetes,” FTC chair Lina Khan said. “So even if they get a better job opportunity with higher wages, with better benefits, they can’t actually switch jobs, which is bad for those workers. It’s also bad for other workers who won’t have the opportunities that are not being created because of these noncompetes.” (H/t Paul Blest of More Perfect Union)

More Details On Non-Compete Bam

Blest notes that the U.S. Chamber of Commerce said that they would file a lawsuit to block the proposal of the ban. However, the FTC argues that non-competes are “an unfair method of competition.”

It is not known whether the ruling would apply to professional wrestling or combat sports. WWE releases have often come with 90-day non-compete clauses in recent years. Talent is still paid during this period, so there is an argument that the non-compete clause is a mislabel.

WrestleZone will provide more information as it becomes available.

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