Masters in Business · Wednesday, September 30, 2026
The widespread use of non-compete agreements for everyday jobs, not just trade secrets, is estimated to cost the U.S. economy $300 billion annually. Eliminating these agreements, particularly for low-wage workers like fast-food employees, could help address economic inequality by allowing workers more options and better wages.
“I knew that there was a labor penalty for all these non-competes that are out there. I had no idea it was $ 300 billion annually.”
“And it turns out that non-competes are really broad and have expanded. You see in Jimmy John's or Jersey Mike's applying non-competes to the sandwich artists.”
“And these things have really proliferated in a way that seems kind of unhelpful for the conversation on inequality and unnecessary, I think, when you think about, you know, protecting the secret to making that perfect sandwich.”