FTC bans most worker noncompete clauses

(CNN)– The Federal Trade Commission issued a final rule on Tuesday that will ban companies from making employees sign noncompete clauses.

The agency estimates that about 30 million U.S. workers are bound by noncompete agreements.

The FTC says these clauses have kept workers from freely switching jobs, starting businesses and have resulted in lower wages.

The decision follows a three-to-two vote among FTC commissioners.

The commissioners who dissented from the majority said they believe the noncompete ban is unlawful and won’t survive legal challenges.