Terri Gerstein Hails FTC Rule on Non-Compete Agreements as “Watershed Moment”

Terri Gerstein (’95), Director of the New York University Wagner Labor Initiative, authored an opinion for CNN outlining the negative impacts of noncompete provisions on workers, innovation and the broader economy, and celebrating the FTC’s Non-Compete Clause Rule banning noncompetes, including “stay-or-pay” contract terms like Training Repayment Agreement Provisions (TRAPs) (“How We All Benefit from This New FTC Rule,” Apr. 26). “The FTC’s rule … creates a resounding national norm about how workers should be treated: They shouldn’t be trapped in a job they want to leave. . . . Regardless of what happens with the Supreme Court, this rule is seismic. . . . The likelihood of extended litigation … and uncertainty about a final outcome underscore the urgency of federal and state legislation on this issue. . . . [S]tates that don’t curb noncompetes risk not only harming their constituents, but also being left behind.”