• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 19, 2026

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 19, 2026
Commentary

The FTC’s proposed ban on noncompetes wouldn’t only mean a huge victory for Gen Z workers. Here’s why it would also benefit employers across the country

By
Ariella Steinhorn
Ariella Steinhorn
and
Amber Scorah
Amber Scorah
Down Arrow Button Icon
By
Ariella Steinhorn
Ariella Steinhorn
and
Amber Scorah
Amber Scorah
Down Arrow Button Icon
January 9, 2023, 12:05 PM ET
FTC Chair Lina Khan
The FTC, headed up by Lina Khan, wants workers to be free to take skills accumulated over a long career and move on to better opportunities for themselves and their families.Tom Williams/CQ-Roll Call, Inc via Getty Images

Last week, the Federal Trade Commission announced a rule that would block employers from including noncompete provisions in employment contracts. This means that workers who want to leave their jobs for another working environment or earning opportunity are now able to forge ahead, without fear of legal action from their former employers. The move, by some calculations, could result in a $300 billion wage increase for workers.

Employers have historically turned to noncompetes to reduce turnover and keep workers from fleeing to competition, as demonstrated by a study from the Economic Policy Institute that found 30% of U.S. employers had all of their employees sign noncompetes, and nearly 50% of employers had some of their employees enter noncompete agreements. Of course, for workers with intimate knowledge of trade secrets like proprietary technology or convoluted recipes, it would make sense that employers should on a case-by-case basis cement confidentiality provisions.

However, the vast majority of workers should have the chance to take skills accumulated over a long career and move on to better opportunities for themselves and their families. There is a multitude of reasons that workers may want to move on and up: a toxic boss, a cross-country move, an unsatisfactory salary, a workplace scandal, or needing more flexibility after having a child. Whether someone is writing code or cutting hair, they shouldn’t have to be indentured to the same employer for years, without the ability to move on as external factors change the conditions of their lives.

In many ways, the FTC’s rule mirrors the cultural desires of a workforce that does not want to be locked into one workplace forever, and it speaks to the needs of those who want to move into more independent, flexible, or lucrative forms of work. Millennials and Gen Zers have a reputation for job-hopping and are far more likely to change jobs frequently than boomers, according to LinkedIn data from early 2022. That same study found that some 25% of Gen Zers say they hope or plan to leave their employers within the following six months. This cohort will make up a third of U.S. labor by 2030. And according to a study by freelance platform Upwork, a record 60 million Americans performed freelance work in the past 12 months, representing 39% of the U.S. workforce.

Employers may still bristle at workers who want to contribute their skills to the competition, but this is a shortsighted attitude. Employees who are forced to stay at a workplace against their will could end up being a greater productivity drain for the company. Looked at from another angle, wouldn’t an employer want to recruit a talented worker from a rival who is mistreated, underpaid, or dissatisfied, and looking to move on to a better opportunity?

This shift also pushes workplaces and managers to treat their workers with more respect, with an understanding that their workers could have the autonomy to move on to something better. If the employee is a low performer, the employer should not care that they are pursuing rival work; if they are a high performer, that employer should do everything in their power to maintain that competitive labor advantage.

In our work at Lioness, a storytelling platform that often works with whistleblowers, we have seen workers petrified that noncompete clauses could limit them from ever working in their industry again. One example involved noncompetes at a yoga studio, where yoga teachers were technically prohibited from working at other yoga studios despite facing bullying, harassment, and unpaid wages at their own studio. When workplaces do this, they are essentially telling individuals they must face legal ruin if they ever bring their skills elsewhere.

In an era of “quiet quitting” and resignations, it’s clear that workers are demanding novel ways to improve their earnings and quality of life. Eliminating noncompete clauses is a win-win for the workers who want more freedom and upward mobility, and the employers who want a greater pool of talent to choose from.

Ariella Steinhorn and Amber Scorah are partners at Lioness.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

More must-read commentary published by Fortune:

  • Will the U.S. and Europe slide into recession in 2023? Here’s how to look out when economic outlooks don’t
  • Biggest CEO successes and setbacks: 2022’s triumphs and 2023’s challenges
  • I have 10 minutes to clean a plane before passengers board. Here’s why the holidays’ air travel chaos was entirely avoidable
  • The next era of work will be about skills–not pedigree. Here’s how employers are changing the way they judge potential, according to LinkedIn and Jobs for the Future

Our new weekly Impact Report newsletter examines how ESG news and trends are shaping the roles and responsibilities of today's executives. Subscribe here.

About the Authors
By Ariella Steinhorn
See full bioRight Arrow Button Icon
By Amber Scorah
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

trader
CommentarySoftware
The 50-year-old law that governed every software company just broke. Here’s what replaces it
By Martin Casado and Abhishek NagarajMay 20, 2026
3 hours ago
FJ Campbell, MD, is chief medical officer at Ardent Health.
CommentaryHealth
A doctor shortage is coming. AI could be the only realistic fix
By FJ CampbellMay 20, 2026
5 hours ago
trump
CommentaryCongress
Milken-Harris Poll: 80% of Americans want AI workforce programs now — and Washington hasn’t delivered
By Karen Kornbluh and Libby RodneyMay 20, 2026
5 hours ago
‘Change the World’ idealism is dying in Silicon Valley. We’ll miss it when it’s gone
CommentarySilicon Valley
‘Change the World’ idealism is dying in Silicon Valley. We’ll miss it when it’s gone
By Jonathan WeberMay 19, 2026
1 day ago
reorgs
CommentaryRestructuring
We found the real reason 70% of transformations fail
By Julia Dhar, Kristy R. Ellmer and Philip JamesonMay 19, 2026
1 day ago
joel
Commentarysaas
The SaaSpocalypse isn’t killing software. It’s exposing where software value really lives
By Joel HronMay 19, 2026
1 day ago

Most Popular

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
18 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
8 days ago
Current price of oil as of May 19, 2026
Personal Finance
Current price of oil as of May 19, 2026
By Joseph HostetlerMay 19, 2026
1 day ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
3 days ago
Employers are quietly pausing 401(k) matches again. The last time this happened was the 2008 recession and Covid
Personal Finance
Employers are quietly pausing 401(k) matches again. The last time this happened was the 2008 recession and Covid
By Courtney Vinopal and HR BrewMay 18, 2026
2 days ago
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
Travel & Leisure
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
By Rio Yamat and The Associated PressMay 18, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.