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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
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
