The Federal Trade Commission wants to Ban Noncompete Employment Clauses

The Federal Trade Commission (FTC) is proposing a ban on noncompete employment clauses that “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” (FTC Chair Lina M. Khan). About one in five Americans is bound by a noncompete agreement according to a March 2022 Treasury Department report. Noncompete clauses are prevalent across jobs: e.g., physicians, tech workers, hairstylists, warehouse workers, and business executives. The FTC is currently taking public comment on the proposal before it issues a final version this spring. 

Read more here: https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-proposes-rule-ban-noncompete-clauses-which-hurt-workers-harm-competition

Read more about The State of Labor Market Competition from the U.S. Department of the Treasury: https://home.treasury.gov/system/files/136/State-of-Labor-Market-Competition-2022.pdf

Post written by Dr. Jacqueline M. Zalewski, West Chester University of Pennsylvania, Membership and Outreach Committee

Posted by Jeremy Booth - Tuesday, 01/10/2023, 10:59 AM - Comments - Category: Member News