https://techcrunch.com/2024/04/25/the-ftcs-ban-on-noncompete-clauses-could-be-good-for-startups-but-it-also-might-be-struck-down/

The Federal Trade Commission voted 3-2 to ban the use of most noncompete agreements on Tuesday. This ruling means companies can’t require their employees, that aren’t senior executives, to wait a set amount of time before joining a competitor or launching their own company in the same category. While the FTC’s ruling will impact industries like financial services and hedge funds the most, due to the prevalence of such agreements in those industries, it could also impact startups.

The ban could actually be positive news for startup founders and hiring managers in a number of ways. For one, it could open up the hiring pool, says Nick Cromydas, the co-founder and CEO of hiring and recruiting startup Hunt Club.