Federal Trade Commission published a major proposal Thursday’s legislation would prohibit employers from using noncompete arrangements to keep workers in their jobs or lower wages.
Noncompete agreements prohibit employees from accepting a job with a competitor company for any period. These are the guidelines FTC According to the agreement, “unfair method of competition” Workers and thus violate federal law
Lina M. Khan, the commission’s chair, said in a statement that the freedom to jump ship to a different employer was at the “core” Economic liberty.
“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,” Khan said.
It is estimated that the ban would increase U.S. worker’s wages by up to $300 billion each year.
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