• The FTC has proposed a new rule that would ban noncompete clauses in the US, which would render all existing noncompete clauses null and void.
• Noncompete clauses are estimated to reduce worker earnings by $250 billion to $296 billion per year.
• Noncompete clauses are increasingly being used for low-wage workers, such as fast-food workers and manual laborers.
• The Chamber of Commerce is opposing the FTC’s proposed rule, claiming noncompete clauses “preserv[e] competition” and “foster innovation.”
• The FTC has also announced an enforcement action against several companies exploiting workers with noncompete clauses.
Published January 10, 2023. Visit Popular Information to read Judd Legum’s original post.
