On Thursday, the Federal Trade Commission unveiled a rule that would block companies from limiting their employees’ ability to work for a rival organization.
The New York Times reports that the United States of America is considering the possibility of enforcing a ban on non compete agreements in labor contracts.
Non compete agreements are typically a major issue in WWE contracts. When a WWE talent is released from his/her contract, the individual serves a non-compete period, during which he/she continues to receive a paycheck from WWE while sitting at home, for either 30 or 90 days. Also, WWE does not generally allow contracted talents to appear for rival wrestling promotions, even though their Superstars are classified as “independent contractors” and denied full employee benefits.
It remains to be seen how WWE, AEW, and Impact Wrestling’s business models will be affected if the said proposal goes through.
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