WWE's Non-Compete Clauses Might Be in Legal Jeopardy

By Connor Casey

WWE's standard contracts for their wrestlers include a  "No Compete" clause where the wrestler cannot work for any other major wrestling promotion for 90 days. But it appears that might be outlawed in the near future, according to a new proposal from the Federal Trade Commission. The FTC announced on Thursday that a ban on noncompetes has been proposed, citing that it "suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses," before noting it could potentially increase wages up to $300 billion per year and expanded career opportunities for 30 million US citizens.

The FTC voted 3-1 to publish its Notice of Proposed Rulemaking, the first step in potentially making non-compete contracts illegal and voiding that stipulation from all current contracts. Whether or not this could affect the WWE and other pro wrestling promotions remains to be seen as wrestlers typically operate as independent contractors rather than employees. Stay tuned for more updates as they become available.

"The freedom to change jobs is core to economic liberty and to a competitive, thriving economy," Lina Khan stated in The FTC's press release. "Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand. By ending this practice, the FTC's proposed rule would promote greater dynamism, innovation, and healthy competition."

This story is developing...

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