Innovation-Killing Noncompete Agreements Are Finally Dying

One of the most stunning twists in the recent five-day crisis at ChatGPT creator OpenAI came when some 95 percent of the company’s hundreds of employees threatened to quit. The staff planned to follow CEO Sam Altman to develop successors to ChatGPT at Microsoft instead. The threat appeared to mark a turning point in Altman’s ultimately successful attempt to return to OpenAI—it was also a scenario that businesses have the legal power to block in most US states.

California, home to OpenAI’s San Francisco HQ, is one of a handful states that bar the enforcement of noncompete agreements in employment contracts, which can forbid employees from hopping jobs to a

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