FTC Rule Would Ban Labor Non-Compete Clauses

The agency calls the practice exploitative.

The Federal Trade Commission has proposed a rule that would eliminate non-compete clauses from labor contracts. This would permit employees to work for rival companies or start their own businesses in their field. The intent is to increase competition and wages.

“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,” Chair Lina Khan stated. “By ending this practice, the F.T.C.’s proposed rule would promote greater dynamism, innovation, and healthy competition.” 

As the Lord Leads, Pray with Us…

  • For wisdom for Chair Lina Khan as she heads the commission.
  • For members of the Federal Trade Commission as they attempt to encourage competition.
  • For the president and his Cabinet members as they endeavor to support labor.

Sources: NY Times, Wall Street Journal


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