Companies Say They Need Noncompete Clauses. Here’s How We Know That’s Not True.

and business associations are opposed to the FTC’s proposal, however, defending employers’ need for noncompetes as a means to protect trade secrets and other confidential information. We decided to put these claims to the test.Michael Lipsitz, we tested whether firms give small raises to workers to get them over a minimum earnings thresholds to enforce noncompetes.

A survey of employment attorneys in Washington reinforced these findings. The median attorney indicated that just 10 percent of their clients would raise the wages of just-below-threshold workers in 2022 to reach or exceed the threshold.

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