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
- Epstein Becker Green Files Amicus Brief for 10 National Industry Organizations to Uphold District Court’s Order Setting Aside the FTC Noncompete Ban
- Trade Secrets Litigation: 2025 Update
- The Buckeye State to End Employer Noncompetes? Ohio Introduces Bill That Would Ban Employers from Entering into Noncompetes
- Washington State Seeks to Broaden the Definition of “Noncompetition” and Ban Most Noncompetes
- Preparing for Non-Compete Litigation: 2025 Update