SNIP
The Federal Trade Commission today proposed a rule that would prohibit employers from imposing noncompete clauses on workers, arguing that “noncompetes constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act.”
The contract clauses currently “bind about one in five American workers, approximately 30 million people,” the FTC said in a fact sheet, writing that noncompetes prevent workers from seeking better jobs and prevent employers “from hiring qualified workers bound by these contracts.”
“Noncompetes undermine core economic liberties,” FTC Chair Lina Khan wrote. “Evidence suggests noncompetes also suppress earnings and opportunity even for workers who are not subject to a noncompete. FTC economists estimate that noncompetes lower US workers’ collective income by $250-$296 billion [per year].”
Khan added that “locking workers in place can enable incumbents to close off markets to new rivals, undermining dynamism and healthy competition.”
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Nice to see the Biden administration do something to support the free market.
h/t Brown Star Kachina