American companies can no longer prevent their employees Accept jobs with competitors According to the rule approved by a federal agency Tuesday.
According to the Federal Trade Commission, 30 million people (About one in five workers) are now subject to these types of restrictions.
Lina Khan, the head of the Federal Trade Commission, is the chief promoter of the measure.
Biden administration It also targeted anti-competitive measures, who are typically associated with high-level executives at technology and financial companies.
However, in recent years also They arrested minimum wage workerssuch as security guards and retail employees.
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Why it's necessary to terminate non-compete agreements, according to the FTC.
The Federal Trade Commission received more than 26,000 public comments In the months leading up to the vote. President Lina Khan on Tuesday pointed to some of the stories she's heard from workers.
“We have heard from employees who have left due to non-compete Trapped in abusive workplaces“
Agreements of this type have reached even lower-wage workers.
Khan was embodied in the testimonies of workers whose personal principles, like their religious practices, The workspace is violated due to this condition.
“The lack of competition kept the worker fixed in place and unable to move freely to a job “It will not interfere with their religious practices.”.
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He says the policy change could lead to wage increases totaling approx 300 billion dollars annually By encouraging people to change jobs freely.
Non-Competition Agreements: Who's Against Them?
According to npr, the ban It will come into effect at the end of this yearBut with the exception of non-competencies present in those companies They gave it to their top executives.
The measure would benefit minimum-wage workers, such as retail employees.
This decision is justified by the argument that it is more likely that these agreements were negotiated. Additionally, the Federal Trade Commission says that employers They should not impose other agreements Existing non-compete agreements.
By a vote of 3 to 2, the opposing commissioners, Melissa Holyoke and Andrew Ferguson, voted They claimed that the FTC was overstepping its authority.
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US Chamber of Commerce She strongly opposed the ban Saying that not competing could benefit both companies by allowing them Better protection of trade secrets.
