LANSING – In a move to promote competition and worker freedom, the Federal Trade Commission (FTC) issued a final rule this week banning non-compete agreements in most circumstances nationwide. Michigan Attorney General Dana Nessel, who previously joined a multistate coalition supporting the FTC’s proposed rule, praised the ruling.   

“My office has seen firsthand the detrimental impact non-compete agreements have on Michigan workers, hindering their ability to explore better job opportunities in a tight labor market,” Nessel said. “This FTC ruling bolsters workers' rights and will have a positive impact on the economy.”   

By banning non-compete agreements nationwide, the FTC estimates its rule will: 

• Reduce health care costs: Banning non-competes could lead to a $74-194 billion reduction in physician services spending. 
• Enhance entrepreneurship: The rule could spark a 2.7 percent increase in new business formation, resulting in over 8,500 additional new businesses created each year.  
• Increase innovation: The number of patents filed each year could surge by an average of 17,000-29,000, representing an 11-19 percent annual growth over the next 10 years. 
• Bolster worker earnings: Workers could see an average annual rise of $524, translating to a total of $400-488 billion in additional wages over the next decade.  

While Michigan antitrust law does currently permit limited non-compete agreements in certain circumstances, this rule would apply nationwide when it becomes effective.  The rule will be effective 120 days after it is published in the federal register. 

To file a complaint with the Attorney General, or get additional information, contact: 

Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form

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