Non-compete and related clauses in Canada

Dan Andrews, Andrea Garnero and Sara Holttinen

No 1872, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper provides new evidence on the prevalence and potential effects of non-compete and related clauses in Canada using OECD surveys of workers and firms. It finds that these clauses are widespread, increasingly used, and often applied beyond roles where they are most justified. Many appear overly broad and legally weak, yet a substantial share of workers report having been prevented from changing jobs or starting a business. Their impact is reinforced by behavioural factors, including reputational and ethical concerns. The findings also bring into closer focus the use of (firm-to-firm) no-poaching and wage fixing agreements that restrict labour market competition and, thus, raise broader concerns for the Canadian Competition Bureau.

Keywords: job mobility; labour market competition; Non-compete clauses (search for similar items in EconPapers)
JEL-codes: J62 K31 L41 (search for similar items in EconPapers)
Date: 2026-07-13
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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1872-en

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