have found that noncompetes restrict innovation, thus discouraging new business formation. Plus, startups are"a key driver of job creation and innovation," Khan wrote in her op-ed.
, a nonprofit that advocates for policy changes to make entrepreneurship accessible to more Americans. While noncompetes are typically considered a tech-industry standard, they have infiltrated nearly every other industry, Hwang said. The terms of a noncompete clause can be broad and sweeping, stating an employee cannot work for or start a competing company for several years, or sometimes in their lifetime. Plus, many workers are either not aware that noncompete clauses were in their contracts or signed after accepting a job offer when they are less likely to object, a"There's a question of how much these contracts are enforceable, but people get scared off," Hwang said.