Federal Trade Commission BANS NON-COMPETE AGREEMENTS!

[thewayne]

This is VERY big news! Approximately 20% of the American work force are covered by non-competes. The ban passed along party lines, 3-2, with the predictable threats from conservative orgs of it being overturned in court and the Chamber of Commerce suing.

From the article: "The FTC received more than 26,000 public comments in the months leading up to the vote. Chair Lina Khan referenced on Tuesday some of the stories she had heard from workers.

"We heard from employees who, because of noncompetes, were stuck in abusive workplaces," she said. "One person noted when an employer merged with an organization whose religious principles conflicted with their own, a noncompete kept the worker locked in place and unable to freely switch to a job that didn't conflict with their religious practices."

These accounts, she said, "pointed to the basic reality of how robbing people of their economic liberty also robs them of all sorts of other freedoms."

The ruling takes affect later this year and does not cover certain classes, such as high-level executives whose agreements are presumably tightly negotiated and not blanket agreements.

https://www.npr.org/2024/04/23/1246655366/ftc-bans-noncompete-agreements-lina-khan

https://news.slashdot.org/story/24/04/24/0436227/us-bans-noncompete-agreements-for-nearly-all-jobs

Comments

[motodraconis]

I don't recall signing a non-compete for a certain job, but when I was made redundant in a similar vein, I was told that if I got a new job in the same sector (education) within 3 months, I would have to pay back my redundancy pay, which was a rather paltry 700 quid. Paltry as a redundancy amount but not paltry to me as I'd have had 3 months unpaid and 700 quid would barely touch the sides.
I went to my union, shocked that the institution could even do this. The union looked into it, and confirmed that yes, there was nothing I could do.

But.

In reviewing my case, they had discovered discrepancies in the way I was being made redundant.

Meaning... the institution would now have to pay me 7000 pounds.

All because they insisted on the right to claw back that 700 quid!🤣🤣🤣

[thewayne]

Wow!  Unions can be a wonderful thing, pity they are so frowned upon here.

[kaishin108]

I wonder how long it will stall in the courts, sigh.

[thewayne]

Weeelllll....  kinda hard to say.  Assuming Biden gets re-elected, which is a very strong probability though not a certainty, it will definitely strengthen the chance of it carrying through IMO.

[kaishin108]

I sure hope it does become a thing!

[disneydream06]

Big surprise that things went along Party lines. :o
Hugs, Jon

[thewayne]

Yeah.  Shocking, wasn't it?