In its January proposal to ban noncompetes, the Federal Trade Commission calls the policy "a widespread and often exploitative practice that suppresses wages, hampers innovation and blocks entrepreneurs from starting new businesses."
Here are five key statistics on noncompetes to know:
1. Around 1 in 5 Americans, or 30 million people, are subject to noncompetes, according to a report from the FTC.
2. The FTC estimates that banning noncompetes would increase workers’ earnings between $250 billion and $296 billion per year.
3. Sixty percent of employed physicians were required to sign a noncompete when starting their jobs, according to a survey from NORC at the University of Chicago.
4. About 87% of physicians support the FTC's proposal to ban noncompetes, according to a March poll conducted by Doximity.
5. Seven states in 2023 have taken action to target noncompetes: California, Connecticut, Indiana, Maryland, New Jersey, New York and Wisconsin.