The FTC wants to ban companies from telling their employees they can't work for competitors -- and
says it'll help workers make $300 billion more a year
The Federal Trade Commission wants to make sure your boss can't force you to sign away your rights to work at a similar company or even start your own business.
Under a new proposed rule, the FTC would ban employers from saddling workers with noncompete agreements that prohibit them from working at competitors or starting similar businesses. The Commission argues that noncompetes are an unfair method of competition, violating the Federal Trade Commission Act and their ban would broaden opportunities for American workers, putting almost $300 billion more in their pockets annually.
"Why are we doing this? Basically, in short, there's a whole raft of economic evidence that now documents the ways in which these noncompete clauses undermine competition and competitive conditions," FTC chair Lina Khan said.
Theoretically, noncompetes are meant to stop primarily high-level employees from jumping ship to other companies, bringing proprietary information and other knowledge with them.
https://www.msn.com/en-us/news/other/the-ftc-wants-to-ban-companies-from-telling-their-employees-they-can-t-work-for-competitors-and-says-it-ll-help-workers-make-300-billion-more-a-year/ar-AA160Ivl