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.
Elon Musk is dialing back his threat to decommission a capsule used to take astronauts and supplies to the International Space Station for NASA. T
President Donald Trump is threatening to cut Elon Musk’s government contracts as their fractured alliance rapidly escalated into a public feud.
President Donald Trump wants his “big, beautiful” bill of tax breaks and spending cuts on his desk to be singed into law by Independence Day. And he’s pushing the slow-rolling Senate to make it happen sooner rather than later. Trump met with Senate Majority Leader John Thune at the White House early this week and has been dialing senators for one-on-one chats, using both the carrot and stick to encourage them to act. But it’s still a long road ahead for the bill. Senators want to make changes to protect Medicaid and to make sure some tax breaks become permanent. Elon Musk called the whole bill a "disgusting abomination.”
China has blasted the U.S. for issuing AI chip export control guidelines, stopping the sale of chip design software to China, and planning to revoke Chinese student visas.
Would U.S. companies go back to Russia if there’s a peace deal over Ukraine?
The explosive growth of the data centers is eliciting some pushback.
President Donald Trump’s doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles.
The Court of Appeals for the Federal Circuit on Thursday allowed the president to temporarily continue collecting the tariffs under the emergency powers law while he appeals the trade court’s decision.
President Donald Trump wants the world to know he’s no “chicken” just because he’s repeatedly backed off high tariff threats.
Wall Street is rallying after President Donald Trump delayed a 50% tariff on goods coming from the European Union.
