OP-ED: A Win for Black Entrepreneurship: Is the New FTC Ban Good for Black Businesses?

By Taalib Saber | the AFRO Historically, non-competes have been used to restrict employees from working in the same industry after leaving their former employer. Though the intention is to protect the intellectual property of businesses, non-competes have often negatively affected competition in product and service markets, especially with Black workers. In what has since created shockwaves across the nation, the Federal Trade Commission (FTC) voted 3-2 for banning noncompete agreements, which goes into effect 120 days after the rule is officially published in the Federal Register. This decision will undoubtedly have a significant impact on both employers and employees alike, but what about Black entrepreneurs? The FTC defines a non-compete clause as, “a term or condition of employment that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from (1) seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment that includes the term or condition; or (2) operating a business in the United States after the conclusion of the employment that includes the term or condition.” If written properly, most non-competes have outlined specific restrictions of a current or former...