The Federal Trade Commission (FTC) is pressing forward with its efforts to ban most noncompete agreements, filing an appeal on October 18 against a federal ruling that struck down its proposed ban. This controversial rule, initially approved in April, sought to nullify noncompetes impacting nearly 30 million U.S. workers, claiming these clauses suppress wages and stifle competition. While the ruling favored businesses opposing the ban, the FTC remains determined to reshape employment practices.

CEO Sound Off: Selective Use of Noncompete Agreements

Amid the ongoing debate, Bryan Luoma, CEO of Tahche, shares a pragmatic perspective. He supports limiting the use of noncompete agreements to a narrow scope of roles—those that handle highly sensitive or proprietary information. For most other positions, Bryan believes that noncompetes do more harm than good by restricting workers’ mobility and earning potential.

While some noncompete agreements serve legitimate purposes, they must be carefully tailored and not overused. Blanket noncompete clauses can alienate workers and even deter potential talent from joining a company. 

As the FTC’s appeal progresses, the case highlights the growing need for businesses to rethink employment agreements. 

Watch the full episode for all the nitty gritty details of Bryan and Vicky’s CEO sound off on this controversial topic. 

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