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.
House Republicans clashed with Attorney General Merrick Garland on Wednesday, accusing him and the Justice Department of the “weaponization” of the department's work in favor of President Joe Biden 's son Hunter.
The Federal Reserve left its key interest rate unchanged Wednesday for the second time in its past three meetings, a sign that it’s moderating its fight against inflation as price pressures have eased. But Fed officials also signaled that they expect to raise rates once more this year.
The Biden administration announced Wednesday that it is providing $600 million in funding to produce new at-home COVID-19 tests and is restarting a website allowing Americans to again order up to four free tests per household — aiming to prevent possible shortages during a rise in coronavirus cases that has typically come during colder months.
The Pentagon began a new effort Wednesday to contact former service members who may have been forced out of the military and deprived of years of benefits due to policies targeting their sexual orientation, starting with those who served under “Don't Ask, Don't Tell."
India is telling citizens in Canada to "exercise caution" amid tensions between India and Canada.
President Joe Biden met with Israeli Prime Minister Benjamin Netanyahu.
Democrats won a special election in Pittsburgh, allowing them to keep House control.
Mexico's largest railroad company said it was suspending operations of its cargo trains due to the massive number of migrants that are illegally hitching rides on trains moving toward the U.S. border.
President Joe Biden is set to meet with Israel Prime Minister Benjamin Netanyahu.
California regulators on Tuesday ordered one of the country’s oldest bottled water brands to stop using some of the natural springs it has relied on for more than 100 years to market its products throughout the western U.S.
