Federal Trade Commission Approves Ban on Non-Compete Agreements

For as long as fans remember, WWE has always employed a noncompete clause in their contract, which is usually 90 days for main roster talent and 30 days for NXT talent. However, it appears the noncompete clause might be done with soon.

The Federal Trade Commission voted 3-2 to implement a ban on noncompete agreements for all workers, with the new regulations set to take effect in 120 days. This means that companies will also have to eliminate existing noncompete agreements. This new rule is expected to face legal challenges, as noncompete agreements are a common tool used by companies to prevent employees from joining competitors.

It remains unclear how this ban will impact the professional wrestling industry, especially since wrestlers are classified as “independent contractors” rather than traditional employees. As noted above, WWE uses noncompete clauses for talent it releases, typically ranging from 30 to 90 days, during which they are still paid. Given the independent contractor classification, it’s uncertain if the FTC’s new regulations will apply directly to pro wrestlers.

The FTC’s recent vote comes after the WWE-UFC merger to form TKO Group, a move that required FTC approval. The FTC estimates that around 18% of the U.S. workforce, or about 30 million people, is currently covered by noncompete agreements. The potential impact on the wrestling industry and other independent contractor roles will become clearer as the new regulations are implemented and tested in court.

Do you feel noncompete clauses will become a thing of the past in professional wrestling soon? Sound off in the comments section below!