A sweeping new Federal Trade Commission rule will prohibit companies nation from including non-compete agreements in contracts with employees.
Commissioners voted along party lines for the new rule.
The rule will take effect in 120 days, or four months.
Federal Trade Commission Chair Lina KhanPhoto by Drew Angerer/Getty Images
They also said that many businesses already protect their proprietary information with non-disclosure agreements and trade secret laws.
The U.S. Chamber of Commerce plans to challenge the new rule in court.
