{"id":535894,"date":"2023-01-06T03:14:16","date_gmt":"2023-01-06T00:14:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftc-proposes-rule-that-would-ban-noncompete-clauses\/"},"modified":"2023-01-06T03:14:16","modified_gmt":"2023-01-06T00:14:16","slug":"ftc-proposes-rule-that-would-ban-noncompete-clauses","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftc-proposes-rule-that-would-ban-noncompete-clauses\/","title":{"rendered":"#FTC proposes rule that would ban noncompete clauses"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a24966d7b1d5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a24966d7b1d5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftc-proposes-rule-that-would-ban-noncompete-clauses\/#%E2%80%9CFTC_proposes_rule_that_would_ban_noncompete_clauses%E2%80%9D\" >&#8220;FTC proposes rule that would ban noncompete clauses&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CFTC_proposes_rule_that_would_ban_noncompete_clauses%E2%80%9D\"><\/span>&#8220;FTC proposes rule that would ban noncompete clauses&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>The Federal Trade Commission proposed a rule Thursday that would ban US employers from imposing noncompete clauses on workers, a sweeping measure that could make it easier for people to switch jobs and deepen competition for labor across a wide range of industries.<\/p>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ftc.gov\/legal-library\/browse\/federal-register-notices\/non-compete-clause-rulemaking\">proposed\u00a0rule<\/a>\u00a0would prevent employers from imposing contract clauses that prohibit their employees from joining a competitor, typically for a period of time, after they leave the company.<\/p>\n<p>Advocates of the new rule argue that noncompete agreements contribute to wage stagnation because one of the most effective ways to secure higher pay is switching companies. They argue that the clauses have become so commonplace that they have swept up even low-wage workers.<\/p>\n<p>Opponents argue that by facilitating retention, noncompete clauses have encouraged companies to promote workers and invest in training, especially in a tight labor market. The public has 60 days to submit commentary on the rule before it takes effect.<\/p>\n<p>During a Cabinet meeting, President Joe Biden called the FTC action \u201ca huge step forward in banning non-compete agreements that are designed simply to lower people\u2019s wages.\u201d<\/p>\n<p>\u201cThese agreements block millions of retail workers, construction workers and other working folks from taking better jobs and getting better pay and benefits in the same field,\u201d Biden said.<\/p>\n<p>The FTC has moved aggressively to curb the power of major corporations under\u00a0Chair Lina Khan, a legal scholar and Washington outsider whose <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointment by Biden signaled a tough antitrust stance.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/lina-khan-ftc.jpg?w=1024\" alt=\"FTC Chair Lina Khan\" class=\"wp-image-25257012\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/lina-khan-ftc.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/lina-khan-ftc.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/lina-khan-ftc.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The FTC has moved aggressively to curb the power of major corporations under\u00a0Chair Lina Khan, a legal scholar and Washington outsider<\/figcaption><figcaption><span class=\"credit\">Getty Images<\/span><\/figcaption><\/figure>\n<p>The agency estimates that the new rule could boost wages by nearly $300 billion a year and expand career opportunities for about 30 million Americans.<\/p>\n<p>\u201cNoncompetes 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,\u201d Khan said in a prepared statement.<\/p>\n<p>The FTC\u2019s proposal comes amid\u00a0an already competitive job market,\u00a0particularly in industries that suffered mass layoffs during the first year of the COVID-19 pandemic and have since struggled to recall their workers. Many workers remain on the sidelines, holding out for better pay, coping with lingering childcare or health issues, or opting for early retirement.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>\u201cThere is a potential that it will contribute to the \u2018great resignation\u2019 that everyone is talking about to some degree, but employees are simply losing one of the tools in their toolbox and there are other ways to retain top talent,\u201d said Vanessa Matsis-McCready, associate <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> counsel and director of human resources for Engage PEO, which provides HR services for small- and medium-sized companies. \u201cYou will see a lot of business trying to retain top talent via raises or other fringe benefits.\u201d<\/p>\n<p>Employers nationwide are still hiring and layoffs are historically low, despite\u00a0high-profile job cut announcements\u00a0from companies such as software provider Salesforce, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>\u2019s parent company Meta, and Amazon. The government is expected to announce Friday that employers added a solid 200,000 jobs last month, and that unemployment remained 3.7%, near a half-century low.<\/p>\n<p>A 2019 analysis by the liberal Economic Policy Institute estimated that 36 million to 60 million workers could be subject to noncompete agreements, which the group said companies have increasingly adopted in recent years.<\/p>\n<p>While such agreements are most common among higher-paid workers, the study found that a significant number of low-wage workers were subjected to them, including more than quarter of those making an average wage of less than $13 an hour.<\/p>\n<p>On Wednesday, for example, the FTC\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2023\/01\/ftc-cracks-down-companies-impose-harmful-noncompete-restrictions-thousands-workers?ftag=YHFa5b931b\">took action<\/a>\u00a0against three companies for unlawfully imposing noncompete clauses against workers, including low-wage security guards who were threatened with a $100,000 fine if they violated the agreement.<\/p>\n<p>The EPI study found that many companies still impose noncompete clauses in several states that already ban or restrict them, including in California, where the practice has been prohibited for a century.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/joe-biden-ftc.jpg?w=1024\" alt=\"President Joe Biden last month\" class=\"wp-image-25257098\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/joe-biden-ftc.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/joe-biden-ftc.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/joe-biden-ftc.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>\u201cThese agreements block millions of retail workers, construction workers and other working folks from taking better jobs and getting better pay and benefits in the same field,\u201d Biden said.<\/figcaption><figcaption><span class=\"credit\">JIM LO SCALZO\/EPA-EFE\/Shutterstock<\/span><\/figcaption><\/figure>\n<p>The proposed FTC rule would require companies to scrap existing noncompete causes and actively inform workers that they are no longer in effect, as well as prohibiting the imposition of new ones.<\/p>\n<p>The proposal is based on a preliminary finding that noncompete clauses quash competition in violation of Section 5 of the Federal Trade Commission Act. It would not generally apply to other types of employment restrictions, like non-disclosure agreements.<\/p>\n<p>But Emily Dickens, chief of staff and head of public affairs for the Society of Human Resources Management, said the proposed FTC rule is overly broad and could potentially harm businesses that depend on them to thrive. She cited very small, emerging industries where crucial know-how cannot be safeguarded through non-disclosure agreements alone.<\/p>\n<p>Dickens said SHRM, a group of more than 300,000 human resources professionals and executives around the world, will encourage its members to present specific situations that could justify noncompete clauses during the FTC\u2019s commentary period.<\/p>\n<p>Although \u201cthere are jobs where it makes no sense to have noncompete,\u201d Dickens said, \u201cthis kind of blanket ban is going to stifle innovation.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2023\/01\/05\/ftc-proposes-rule-that-would-ban-noncompete-clauses\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;FTC proposes rule that would ban noncompete clauses&#8221; The Federal Trade Commission proposed a rule Thursday that would ban US employers from imposing noncompete clauses on workers, a sweeping measure that could make it easier for people to switch jobs and deepen competition for labor across a wide range of industries. The proposed\u00a0rule\u00a0would prevent employers&#8230;<\/p>\n","protected":false},"author":1,"featured_media":535895,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/ftc-noncompete-comp.jpg?quality=75&strip=all&1672944597&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[74865,138036,74781,75466,70875],"class_list":["post-535894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-job","tag-1-5-23","tag-employers","tag-employment","tag-ftc"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=535894"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/535894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/535895"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=535894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=535894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=535894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}