Noncompetes are not gone yet, but the fight is far from over. While the federal ban on noncompetes has stalled, states could still take action (or may already have done so). Whether you’re a business leader or an employee, it’s important to understand how noncompetes affect your workforce — not just those leaving, but the ones who stay too. Noncompetes create an environment of fear and restriction, limiting the growth and freedom of your team members, which ultimately affects the entire business. It’s time to rethink how we approach retaining talent and how we can build a more open and empowering workplace.
If you’re worried about losing top talent, I have to ask: why are they leaving? Building an environment where people want to stay is far more effective than forcing them to stay. If employees feel valued, supported, and see growth opportunities, they are more likely to stay with you. By relying on noncompetes, companies miss out on the chance to address underlying issues like culture, leadership, and career development. Instead of focusing on restrictive agreements, we should focus on fostering a positive environment where people want to contribute and grow.
Noncompetes not only hurt your people, but they also hurt the economy as a whole. By removing these restrictions, we can create a healthier, more innovative country for everyone. When employees have the freedom to move to new opportunities, they bring new ideas, new skills, and fresh perspectives to the industries they join. This cross-pollination of talent is what drives progress, innovation, and economic growth. It’s time to move away from the outdated notion that restricting employees is good for business. Instead, let’s embrace the idea that empowering employees leads to a stronger, more competitive company.
How Would a Noncompete Ban Help American Workers?
Reduced Health Care Costs
The FTC estimates a ban would reduce health care spending by $74-194 billion over the next decade, simply by lowering costs for physician services. When healthcare professionals are free to move between practices or start their own, competition increases, which drives down prices and improves access to quality care. This benefits not only the healthcare workers themselves but also the patients they serve, leading to a more efficient and affordable healthcare system overall.
New Business Formation
The rate of new business formation would increase by 2.7%, leading to 8,500 additional new businesses each year. That’s more opportunity, more jobs, and more economic growth. When talented individuals are free to use their skills and expertise to start their own ventures, they create new products, services, and jobs that benefit everyone. By lifting the barriers that noncompetes impose, we encourage entrepreneurship and give people the chance to pursue their dreams without fear of legal repercussions. This spirit of innovation is what fuels a dynamic and thriving economy.
Rise in Innovation
A ban could boost the number of patents by 17,000-29,000 per year. By the tenth year, that’s an increase of up to 53,000 new patents annually — a rise of 11-19% in innovation. Innovation thrives in an environment where talent can move freely, bringing new ideas and fresh perspectives to different companies and industries. When people are free to take their knowledge and apply it in new contexts, they can build on what they’ve learned and create groundbreaking solutions. Noncompetes stifle this kind of progress by keeping talented individuals locked in place, unable to contribute to the wider industry. Removing these restrictions will help drive forward the kind of innovation that benefits all of us.
Higher Worker Earnings
Without noncompetes, worker earnings could rise by $400-$488 billion over the next decade. The average worker would earn an extra $524 each year — money that could make a real difference in people’s lives. Higher earnings mean greater financial stability for workers and their families, which in turn leads to a healthier economy. When people have more disposable income, they spend more, which supports local businesses and stimulates economic growth. Noncompetes artificially suppress wages by limiting workers’ ability to negotiate better opportunities. By banning them, we create a fairer job market where workers are rewarded based on their skills and contributions.
A Call to Action
Noncompetes limit growth, innovation, and opportunity. Ending them could transform not just individual careers, but entire industries and communities. Imagine a workforce where employees feel empowered to explore new opportunities, where companies attract talent based on the quality of their culture and opportunities rather than legal threats, and where innovation thrives because the best ideas are allowed to flourish.
Instead of noncompetes, consider implementing non-disclosure agreements (NDAs) that protect truly sensitive information without restricting employees’ future career opportunities. Training your workforce on what NDAs mean and the importance of safeguarding proprietary information can help achieve the balance between protecting business interests and empowering employees. Let’s create workplaces that inspire loyalty through opportunity, not fear of restriction. It’s time to rethink noncompetes for a stronger, more vibrant workforce.
Are you ready to join the movement and put your people first? Together, we can create an environment where businesses succeed by empowering their employees, and where workers are free to pursue their passions and contribute to a brighter future for all of us.
Check out these fact sheets and estimated increased earnings by state.
