Blog Page


Federal Trade Commission Proposes Historic Ban On Noncompete Agreements – Yahoo News

FTC Chair Lina M. Khan announced the proposed bar on noncompetes.
The Federal Trade Commission issued a major proposal Thursday that would bar employers from using noncompete agreements to lock workers into their jobs and keep wages down.
Employees who sign noncompetes are forbidden from taking a job at a competing company for a certain period of time. The FTC said the agreements create an “unfair method of competition” for workers and therefore violate federal law.
Lina M. Khan, the commission’s chair, said in a statement that the freedom to jump ship to a different employer was at the “core” of economic liberty.
“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,” Khan said.
The agency estimates that a ban could increase wages for U.S. workers by as much as $296 billion per year. 
The commission’s members voted 3-1 in favor of pursuing the rule, which must go through a public comment period before it’s finalized. It could later change shape or be challenged in court.
Policymakers ― primarily Democrats ― have criticized the use of noncompetes for several years, noting they can rob workers of the higher wages they would earn in a free labor market. Once confined to high-earning fields like computer engineering, the clauses appeared to proliferate in recent decades, even impacting low-wage fields like fast food.
President Joe Biden urged the FTC to take action on noncompete agreements early in his term, issuing an executive order in July of 2021 saying they “unfairly limit worker mobility.” Khan is widely considered one of the most progressive appointments Biden has made, and her agenda at the FTC could turn out to be a significant piece of the president’s legacy.
“[T]hese aren’t just high-paid executives or scientists who hold secret formulas for Coca-Cola so Pepsi can’t get their hands on it,” Biden said at the time. “They’re construction workers, hotel workers, disproportionately women and women of color.”
Though it’s difficult to know exactly how many workers are affected by the clauses, the Economic Policy Institute, a left-leaning think tank, estimates that between 36 and 60 million workers are subject to them. The FTC puts the number around 30 million.
Even when employers do not try to legally enforce noncompetes, the clauses can still have their desired effect by discouraging workers from seeking jobs elsewhere. Many would rather not find out if their employer would try to take them to court.
An employer might find noncompetes especially useful in a tight labor market like the current one. Companies are facing increased competition for workers, requiring them to raise pay in many fields in order to retain talent. The use of noncompetes could help them keep employees at their current pay rates.
The more ridiculous uses of noncompete agreements have helped spur a backlash against them. For instance, HuffPost reported in 2015 that noncompete agreements were being used by franchisees of the Jimmy John’s sandwich chain.
The clause barred employees from taking jobs at a competing sandwich shop within two years of working at a Jimmy John’s location. A competitor was defined as a shop that makes “submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches” within three miles of a Jimmy John’s. The FTC cited the Jimmy John’s case in its proposed rule.
The agency said the rule would also extend to cover “de facto” noncompetes that aren’t framed as traditional noncompete clauses. An example would be a worker who’s required to pay thousands of dollars in training fees if they want to quit their job. In such a scenario, a worker may feel unable to leave their job because of potential debt.
Employers would be required to comply with the new rule within six months of it going into effect, the FTC said. Companies that already have noncompetes in place would be required to rescind them and notify workers that they would no longer be held to them.
Before issuing its proposed rule, the FTC announced on Wednesday that it was taking legal action against three companies for what it called the illegal use of noncompetes. The agency said the clauses kept wages down for manufacturing workers, engineers and low-wage security guards by preventing them from pursuing jobs elsewhere.
The U.S. Federal Trade Commission has proposed a rule that would ban companies from entering or attempting to enter a non-compete agreement with a worker. The rule banning non-compete clauses in…
Federal Trade Commission is cracking down on coercive employment agreements that keep workers bound to their jobs.
The agency is moving to ban the clauses, which would allow workers to take jobs with rival companies or start competing businesses without the threat of being sued.
A California judge has dismissed a sexual assault, human trafficking, and unlawful imprisonment lawsuit brought against Marilyn Manson by model Ashley Morgan Smithline. Manson, born Brian Warner, has denied all allegations. Judge Fernando L. Aenlle-Rocha dismissed the case yesterday (Jan. 3) after Smithline failed to hire a new attorney or choose to represent herself within … Judge Dismisses Sexual Assault Lawsuit Against Marilyn Manson Read More » The post Judge Dismisses Sexual Assault Lawsuit
Rep.-elect Lauren Boebert's, R-Colo., sudden nomination of Rep.-elect Kevin Hern, R-Okla., for House speaker failed to garner more than three votes in the ninth round of balloting.
“Is this a game show?” the Fox News host asked after he interrupted Boebert.
The Defence Intelligence of Ukraine has published an intercepted phone call between a Russian occupier and his wife. Source: Press service of the Defence Intelligence of Ukraine Quote: " – Babe, these are just Khokhols (a Russian derogatory term for Ukrainians – ed.
The French president’s move heightens the pressure on German Chancellor Olaf Scholz to approve allies’ transfer of German-built Leopard battle tanks.
Arizona's new governor was criticized for not taking her oath of office in public, but Katie Hobbs outfoxed the minions of a disgruntled Kari Lake.
The Trump-backed Republican recently filed two appeals after losing a lawsuit over her gubernatorial election loss.
Editor’s note: Rep. Don Bacon (R-Neb.) said some Republicans had begun “preliminary” discussions with Democrats about a deal to support a consensus candidate. A previous version of this story contained incorrect information. We regret the error. Rep. Don Bacon (R-Neb.) on Wednesday said “preliminary talks” had begun with Democrats about supporting a “consensus candidate” for…
The Republican Party is in chaos after Kevin McCarthy failed to win enough support to be elected House speaker after a 2nd day of votes
Photo by Win McNamee/Getty ImagesThree calendar days, four legislative days, and seven ballots later, the numbers aren’t getting better for Rep. Kevin McCarthy’s (R-CA) bid to be speaker. On Thursday, after McCarthy made new concessions the night before, there were still 20 GOP votes against him, with one Republican voting present—just like Wednesday, and one vote worse than Tuesday.McCarthy hasn’t moved anyone. But the Never Kevin faction isn’t exactly growing either. And one of their key membe
The former president was nominated for House speaker twice on Thursday. He failed to garner a majority of votes on both ballots.
"Congratulations on retaining the most insubordinate and disrespectful employee you could possibly imagine. I will be in tomorrow two hours late and leave five hours early with a one-hour lunch."View Entire Post ›
Kyrylo Budanov, Chief of the Defence Intelligence of Ukraine, has said that Vladimir Putin, President of Russia, has cancer and will die very soon, but after Ukraine's win in the war with Russia. Source: Kyrylo Budanov, Chief of the Defence Intelligence of Ukraine, in the interview with ABC News Quote: "He has been sick for a long time; I am sure he has cancer.
Florida GOP Congresswoman-elect Anna Paulina Luna said Tuesday evening that says she was “sexually harassed” while leaving her office in the U.S. Capitol.
The Fox News host went after his own party after the GOP-controlled House couldn't elect Kevin McCarthy in multiple votes.
Rep. Kevin McCarthy and some of his GOP detractors appeared Thursday to be nearing a deal that would bring him closer to the Speakership, even as his most vocal critics vowed that it wouldn’t be enough to grant him the gavel. The two sides were working furiously behind closed doors to carve out an agreement…
Democratic House representative Marcy Kaptur signaled in an interview that she would consider crossing the floor and voting for Kevin McCarthy.


× How can I help you?