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

WWE’s standard contracts for their wrestlers include a  “No Compete” clause where the wrestler cannot work for any other major wrestling promotion for 60 to 90 days following their release. They are still paid their downside guarantees during that time, but they are not allowed to work for the competition. There is a chance that non-compete clause issue 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 non-compete clauses has been proposed, stating that it “suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses.” It also noted that 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 Rule Making, the first step in potentially making non-compete contracts illegal and voiding that stipulation from all current contracts. Whether this could affect the WWE and other pro wrestling promotions remains to be seen, as wrestlers typically operate as independent contractors rather than employees.

In a press release, Lina Khan of the FTC stated that by ending the practice, the FTC’s proposed rule would promote greater dynamism, innovation, and healthy competition. She believes that the freedom to change jobs is core to economic liberty.

“The freedom to change jobs is core to economic liberty and to a competitive, thriving economy,”

“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.”

Ringside News will keep updated on this developing story. The situation is an eye-opener for pro wrestling promotions like WWE.

Is the possible end of the no-compete clause good for the pro wrestling community? Sound off in the comments!