Chair Khan says that the agreements keep wages low and suppress new ideas.
The Federal Trade Commission recently announced a final rule that bans noncompetes nationwide. The commission stated that the ban will protect “the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.“
“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” said Chair Lina Khan. “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”
The agency anticipates the rule will not only promote new business formation but increase the earnings of the average worker and lower health care costs.
As the Lord Leads, Pray with Us…
- For discernment for the FTC chair and members of the commission as they seek to ensure competition in the U.S. marketplace.
- For the president and his economic advisors to be led by God as they set employment and labor policies.
Sources: Federal Trade Commission
