Noncompete agreements are contracts between employers and employees that restrict the employee’s ability to work for a competing business or start a competing company for a certain period of time after their employment ends. These agreements can help protect a business’s trade secrets, customer relationships, and other confidential information. However, there has been growing concern that noncompete agreements unfairly limit workers’ ability to seek new employment opportunities.

In early 2024, the Federal Trade Commission (FTC) proposed a rule to ban most noncompete agreements across the United States. The FTC argued that these contracts prevent workers from earning higher wages and moving freely between jobs, which they believe harms competition. Although this proposal faced legal challenges, the possibility of future changes still concerns many business owners. If you have questions about how these developments might impact your company, it is essential to consult a Milwaukee, WI business law attorney.