What’s non-compete clauses and why is it a big deal that it’s banned?

Question

I see that the FTC banned it and (from what I see) it seems like a good thing. Why?

In: Economics

Answer 1

The problems is that they are often abused. I could understand it if that non-compete comes associated with a huge compensation package that roughly makes up for the hassle of moving later or working in a different field. BUT, I have seen non-competes in the most absurd jobs. My wife is an SLP that makes an average wage and her boss made her sign a non compete. We didn’t really care because they are legally void in my state and good luck getting a state district court to enforce that shit (Colorado).