Workers received good news Tuesday with a new rule by the FTC.
CBS News reports:
“Federal regulators on Tuesday enacted a nationwide ban on new noncompete agreements, which keep millions of Americans — from minimum-wage earners to CEOs — from switching jobs within their industries.
The Federal Trade Commission on Tuesday afternoon voted 3-to-2 to approve the new rule, which will ban noncompetes for all workers when the regulations take effect in 120 days. For senior executives, existing noncompetes can remain in force. For all other employees, existing noncompetes are not enforceable.
The antitrust and consumer protection agency heard from thousands of people who said they had been harmed by noncompetes, illustrating how the agreements are “robbing people of their economic liberty,” FTC Chair Lina Khan said.
The FTC commissioners voted along party lines, with its two Republicans arguing the agency lacked the jurisdiction to enact the rule and that such moves should be made in Congress.
Within hours of the vote, the U.S. Chamber of Commerce said it would sue to block ‘this unnecessary and unlawful rule and put other agencies on notice that such overreach will not go unchecked.’ The new rule would ‘undermine American businesses’ ability to remain competitive,’ the trade group, which advocates for U.S. corporations and businesses, said in a statement.”
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