The fine print that follows you out the door: non-compete clauses are spreading
A new OECD study reveals that non-compete clauses are increasingly common across various industries and skill levels, far exceeding their original intent of protecting trade secrets. The research highlights that these clauses now frequently affect low-wage workers and those without access to sensitive information, potentially hindering economic mobility.
Why it matters
The widespread use of non-compete agreements can suppress wage growth and limit labor market dynamism, prompting global policy debates on labor regulation.
The prevalence of non-compete clauses is surprisingly high, with adverse consequences for economic dynamism, wages and productivity. This brings into closer focus recent attempts to restrict the use of such clauses in some OECD countries.
The article reports on findings from an international organization (OECD) using neutral, data-driven language without taking a political stance.
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