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.
Using sidewalks as exam rooms and heavy red duffle bags as medical supply closets, volunteer medics spend their Saturdays caring for the growing number of migrants arriving in Chicago without a place to live.
Israeli troops advanced toward Gaza City on Thursday, as the Palestinian death toll rose above 9,000. With no end in sight after weeks of heavy fighting, U.S. and Arab mediators intensified efforts to ease Israel's siege of the Hamas-ruled enclave and called for at least a brief halt to the hostilities in order to aid civilians.
Rep. George Santos easily survived a vote Wednesday to expel him from the House as most Republicans and 31 Democrats opted to withhold punishment while both his criminal trial and a House Ethics Committee investigation proceed.
Former President Donald Trump's two sons, Eric and Donald Jr., are set to take the stand in the ongoing civil fraud trial against Trump and his companies. Trump Jr. is expected to testify Wednesday.
The Supreme Court will hear arguments about whether a California man is able to trademark the phrase 'Trump too small.' The phrase appears to mock former President Donald Trump and suggests the GOP front-runner is 'too small' for office.
