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

Trendingnow

1

eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats

2

Jamie Dimon says his stockbroker father taught him to invest with a 'brutally hard' childhood game

3

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

1

eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats

2

Jamie Dimon says his stockbroker father taught him to invest with a 'brutally hard' childhood game

3

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Commentarynon-compete agreements

The FTC must free American workers, consumers, and entrepreneurs from noncompete agreements

By
John Arensmeyer
John Arensmeyer
Down Arrow Button Icon
By
John Arensmeyer
John Arensmeyer
Down Arrow Button Icon
April 28, 2023, 5:52 AM ET
The Federal Trade Commission is considering a ban on non-compete agreements.
The Federal Trade Commission is considering a ban on non-compete agreements.Getty Images
Add Fortune on Google for similar content.

“A market without competition is without growth, innovation, or economic moderators. A non-compete clause is a tool that, when enforced, can create stagnation. Not a great way to grow a vibrant economy,” Colorado small business owner Tracy duCharme recently testified at a listening session with Federal Trade Commission (FTC) Chair Lina Khan hosted by Small Business Majority. Tracy once used non-competes but later realized that these agreements prevented natural competition, which is valuable to innovation and small business growth.

As a former small business owner, I know firsthand that these agreements are unnecessary to protect proprietary assets. Before starting Small Business Majority, I founded and ran my business for 12 years in California. California is one of three states–the other two being Oklahoma and North Dakota–that prohibit the enforcement of non-compete agreements. It was exciting to be part of the new and growing interactive communications field and be free to hire whomever I wanted. I still have close ties to many small businesses in California, and their entrepreneurial spirit has never suffered from California’s ban on non-competes. This is one reason why I believe President Joe Biden was right to encourage the FTC to ban non-compete agreements during his second State of the Union address–and why the FTC should enact its proposed rule to ban non-competes.

Most non-compete clauses are antithetical to the free, fair, and open competition essential to a thriving, inclusive, and equitable economy. Not only do non-compete clauses hinder workers’ ability to maximize their value in our economy, but they are also a significant impediment to entrepreneurship, particularly for people in our most under-resourced communities.

I am not alone in calling for a ban on most non-compete agreements. Small Business Majority’s nationwide recent survey of more than 300 small businesses found that nearly six in 10 small businesses support the FTC’s proposed ban. Almost half of the respondents had been subjected to a non-compete agreement that prevented them from starting or expanding their business–and more than a third had been prevented from hiring an employee due to a non-compete agreement.

Entrepreneurs in our small business network have shared that from their personal experiences, they see non-competes only benefiting large companies with the resources to hamstring their competition. Michigan small business owner and Small Business Majority National Council member Leo Carr noted that he could start and grow his agency because he was not restricted by a non-compete clause. He freely pursued work elsewhere and used this opportunity to cultivate strong relationships in his field and build a reputation for having diverse experiences.

Others have shared that while they feel forced to add a non-compete clause to contracts to compete with larger companies for talent, they prefer not to limit their employees. They find it unfair to enforce an agreement that prevents an employee from pursuing other opportunities that may be better suited for their evolving occupational needs.

Getting rid of this restrictive clause is not only good for the small business community, but it’s also good for our national economy. More than 30 million people are affected by non-compete agreements, significantly limiting hiring and wage negotiation power for people seeking growth and new opportunities.

The ideal American dream is built on anyone being able to attain their own version of success. Entrepreneurship provides a pathway toward success based on the idea that everyone in the business community will have the ability to operate in an open and fair competitive market. However, non-compete agreements contribute to corporate concentration and thus higher prices by limiting new entrants into the economy. Non-compete agreements often favor larger, well-heeled companies with the resources to promote and adjust their goods and services based on the market. With less competition, prices increase, creating an environment unsuitable for innovators, consumers, or small business employees who rely on productivity for job growth.

The FTC comment period on the proposed rule to ban non-competes closed on Apr. 19. Before the comment period ended, more than 400 small businesses and small business organizations urged the FTC to enact this rule. We hope the FTC listens to the true voices of small business owners and removes restrictions that unfairly trap this community in a state of immobility.

 John Arensmeyer is the founder and CEO of Small Business Majority.

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:

  • A recession in 2023 is now inevitable. Layoffs in tech and finance will spread to other sectors
  • Global resources shark Glencore must understand the world is no longer for sale
  • Credit scoring is pseudoscience–and it perpetuates the consequences of slavery and segregation
  • America’s ‘disease burden’ is getting heavier by the day–and it’s unevenly distributed across states
About the Author
By John Arensmeyer
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

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
  • TikTok icon
  • YouTube icon

Latest in Commentary

f
CommentaryMarkets
Dr. Fauci, the Age of Big Players in science and what his diary reveals about the disputed origins of Covid
By Steve H. Hanke and Roger KopplJuly 29, 2026
6 hours ago
Nnamdi Iregbulem is a partner at Lightspeed Venture Partners
CommentaryVenture Capital
Button-mashing never worked in StarCraft. Tokenmaxxing won’t work in AI
By Nnamdi IregbulemJuly 29, 2026
7 hours ago
orla
Commentarybenefits
The Benefits Activation Gap: what claims data teaches us about employee engagement
By Orla NixonJuly 29, 2026
9 hours ago
henrik
CommentaryData
I was Spotify’s first analytics lead. Here is what VCs get wrong about data
By Henrik LandgrenJuly 29, 2026
13 hours ago
helen
Commentarycyber
Helen Toner: the Hugging Face hack was just a matter of time and exposes a huge blind spot in AI policy
By Helen TonerJuly 28, 2026
1 day ago
jiro
CommentaryLeadership
You don’t need to be an expert to hire one. You need a tunaman
By Vitaliy KatsenelsonJuly 28, 2026
1 day ago

Most Popular

eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats
Law
eBay will pay nearly $50 million after employees reportedly sent a Massachusetts couple a bloody pig mask, cockroaches and death threats
By The Associated Press and Leah WillinghamJuly 28, 2026
23 hours ago
Jamie Dimon says his stockbroker father taught him to invest with a 'brutally hard' childhood game
C-Suite
Jamie Dimon says his stockbroker father taught him to invest with a 'brutally hard' childhood game
By Sarah GlodekJuly 29, 2026
13 hours ago
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
4 days ago
Current price of oil as of July 28, 2026
Personal Finance
Current price of oil as of July 28, 2026
By Joseph HostetlerJuly 28, 2026
1 day ago
Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?
C-Suite
Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?
By Nick LichtenbergJuly 27, 2026
2 days ago
Current price of gold as of July 28, 2026
Personal Finance
Current price of gold as of July 28, 2026
By Danny BakstJuly 28, 2026
1 day 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.