The Federal Trade Commission building in Washington is pictured on Jan. 28, 2015. The Federal Trade Commission is proposing a new rule that would prevent employers from imposing noncompete clauses on their workers. (AP Photo/Alex Brandon, File)
The U.S. Federal Trade Commission (FTC) has proposed a rule that would ban the practice of companies forcing workers to sign non-compete clauses in their contracts.
Once limited to highly paid executive positions, such clauses are increasingly common in white collar jobs of all types of levels of compensation. One 2021 study out of the University of Chicago found that approximately 18 percent of the labor force is bound by non-competes.
Yet critics of the practice say it greatly limits workers' flexibility to change jobs.
“The freedom to change jobs is core to economic liberty and to a competitive, thriving economy,” said Chair Lina M. Khan in a statement. “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. By ending this practice, the FTC’s proposed rule would promote greater dynamism, innovation, and healthy competition.”
The FTC estimates the rule could increase overall wages by $300 billion per year. The agency is pursuing the ban under Section 5 of the FTC Act, which targets unfair methods of competition. The public now has 60 days to comment on the rule change.
“The proposed rule would ensure that employers can’t exploit their outsized bargaining power to limit workers’ opportunities and stifle competition," said Elizabeth Wilkins, director of the Office of Policy Planning at the FTC.
No fingerprints or DNA turned up on the baggie of cocaine found in a lobby at the White House last week despite a sophisticated FBI crime lab analysis, and surveillance footage of the area didn’t identify a suspect, according to a summary of the Secret Service investigation obtained by The Associated Press. There are no leads on who brought the drugs into the building.
Kamala Harris, who made history as the first woman or person of color to serve as vice president, has made history again by matching the record for most tiebreaking votes in the Senate.
Republicans on the House Judiciary Committee accused the agency of targeting conservatives, suppressing evidence that Covid-19 came from a lab leak and abusing its surveillance powers.
The Biden administration calls it a “student loan safety net.” Opponents call it a backdoor attempt to make college free. And it could be the next battleground in the legal fight over student loan relief.
Nearly 30,000 people in Mississippi were dropped from the state's Medicaid program after an eligibility review that the government ended during the pandemic.
Members of a deeply conservative Amish community in Minnesota don't need to install septic systems to dispose of their “gray water,” the state Court of Appeals ruled Monday in a long-running religious freedom case that went all the way up to the U.S. Supreme Court.
