Federal regulators are taking aim at companies that make workers promise not to take jobs elsewhere as a condition of employment.

The Federal Trade Commission on Wednesday announced settlements with three companies that made workers sign noncompete agreements, in which they promised not to work for competitors for a period of time after leaving their jobs. It is the first time that the FTC has taken legal action on noncompetes — restrictions that have grown increasingly popular with employers in recent years and that tend to lower workers’ wages by reducing their options.

Economic Dynamism Non-Compete Reform

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