Federal Trade Commission Proposes To Ban Non-Compete Clauses

Non-compete clauses in professional wrestling could soon come to an end.

In a press release on January 5, the United States Federal Trade Commission proposed a new rule that would ban non-compete clauses, something which the FTC deemed to be often an "exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses." The FTC estimated that wages could increase by almost $300 billion per year in the United States if the practice is prohibited.

The proposed rule would apply to independent contractors, as well as anyone who works for an employer. The rule would also force employers to rescind any existing non-compete clauses. The FTC is currently seeking public comment on the proposed rule.

Non-compete clauses are common in professional wrestling, primarily through WWE. Talents are often subject to a non-compete clause when they are released by the company, with 90 days being common on the main roster and 30 days on NXT. Other promotions have used non-compete clauses too, including IMPACT Wrestling. Ric Flair had a non-compete agreement when he left the organisation in 2012.