Beyond One Size Fits All: A Judicious Perspective on Noncompete Agreements

Amid the recent global trend toward restricting noncompete agreements (NCAs), we assess and identify critical research gaps in the NCA literature, notably the scarcity of NCA studies outside the United States and the scarcity of research on NCAs’ organizational-level effects. Furthermore, we pinpoint areas of ambiguous evidence, such as NCAs’ influence on wages, entrepreneurship, and innovation. Our in-depth analysis reveals the need for more research using multiple data sources to navigate the complexities of NCA use in diverse legal and cultural landscapes. Highlighting the literature’s significant gaps, we argue for a judicious stance toward NCAs, emphasizing the need for cautious interpretation of existing data before implementing sweeping NCA restrictions.