After 26,000 public comments, FTC to vote on rule banning noncompete agreements [View all]
Source: NPR
APRIL 23, 20245:00 AM ET
After receiving more than 26,000 public comments, the five members of the Federal Trade Commission are set to vote Tuesday on whether to issue a final rule banning noncompetes, declaring them an unfair method of competition.
In a statement last week, the FTC said the final rule under consideration "would generally prevent most employers from using noncompete clauses." It's not yet clear how the final rule differs from the version first proposed in January 2023.
A noncompete agreement typically blocks a worker from going to work for a competitor or starting up a competing business of their own. The FTC estimates about 30 million people, or one in five American workers, from minimum wage earners to CEOs, are bound by noncompetes The Biden administration has argued that these agreements harm workers by lowering wages and hurt the U.S. economy by stifling entrepreneurship.
"The freedom to change jobs is core to economic liberty and to a competitive, thriving economy," said FTC Chair Lina M. Khan in a statement when the proposed rule was first introduced. "Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand."
Read more: https://www.npr.org/2024/04/23/1246430110/noncompete-agreements-ftc-ban-lina-khan
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