Study: Noncompetes Hurt Hiring Without Stopping Data Leaks

HR Dive · United States · Oct 13, 2026

A large randomized study of 14,000+ job offers at two finance firms found that noncompete agreements do not reduce leakage of sensitive information beyond what a standard NDA already provides. Removing noncompetes increased worker mobility by 36–52% and raised wages by 12–17%, while companies that disclosed noncompetes upfront struggled more to attract candidates. The FTC's 2024 ban on noncompetes was ultimately abandoned, leaving enforcement to state law, but researchers note that even unenforceable clauses alter worker behavior. Staffing firms and recruiters placing candidates in states where noncompetes are still valid should weigh the candidate dropout risk and the finding that workers willing to sign restrictive clauses are also more likely to violate them.