Non-Compete Clauses Are Spreading and Holding Back Economic Growth

The fine print that follows you out the door: non-compete clauses are spreading

New OECD evidence reveals that non-compete clauses have quietly spread far beyond executives to cover low-wage workers and those with no access to trade secrets. These often unenforceable restrictions create a chilling effect, preventing job mobility, stifling entrepreneurship, and dragging down productivity across OECD economies. Rather than protecting legitimate business interests, this fine print is now a significant barrier to a dynamic labor market.

"The mere presence of a clause — and the belief that it might be enforced — is often enough to keep people from moving."