The Business Case for a Nationwide Ban on Noncompetes

The Hill (online), January 15, 2023

San Diego Legal Studies Paper No. 23-033

3 Pages Posted: 25 Sep 2023

See all articles by Rachel S. Arnow-Richman

Rachel S. Arnow-Richman

University of Florida Levin College of Law

Orly Lobel

University of San Diego School of Law

Date Written: January 15, 2023

Abstract

The Federal Trade Commission’s proposed ban on noncompetes should be welcome news to the business community. Noncompete agreements stifle economic development, limit firms’ ability to hire and depress innovation and growth. A nationwide ban will fuel economic expansion and support competitive markets. Noncompetes are associated not only with suppressed wages and exacerbated racial and gender pay gaps, but also reduced entrepreneurship, job growth, firm entry and innovation.

Keywords: non-compete clause, entrepreneurship, competition, innovation, talent

Suggested Citation

Arnow-Richman, Rachel S. and Lobel, Orly, The Business Case for a Nationwide Ban on Noncompetes (January 15, 2023). The Hill (online), January 15, 2023, San Diego Legal Studies Paper No. 23-033, Available at SSRN: https://ssrn.com/abstract=4557066 or http://dx.doi.org/10.2139/ssrn.4557066

Rachel S. Arnow-Richman

University of Florida Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States

Orly Lobel (Contact Author)

University of San Diego School of Law ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

HOME PAGE: http://www.orlylobel.com/

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