FTC's New Rule to Ban Non-Compete Clauses
Empowering Workers and Boosting Competition
Final Rule Takes Effect in 2023
The Federal Trade Commission (FTC) has unanimously voted in favor of a new rule that will ban employers from imposing non-compete clauses on their employees. The rule, which will take effect in 2023, is a significant victory for workers' rights and competition in the labor market.
Non-compete clauses are contractual provisions that prohibit employees from working for a competing business after they leave their current employer. These clauses have been widely criticized for stifling innovation, suppressing wages, and limiting workers' career opportunities. The FTC's new rule will put an end to these harmful practices.
According to the FTC, fewer than 1% of workers are senior executives who may be exempted from the new rule. The rule defines "senior executive" as an employee who is responsible for a significant part of the business's operations or has access to confidential information that could harm the company if disclosed.
The FTC's new rule is a major step forward for workers' rights. It will empower workers to negotiate for better wages and benefits, pursue new job opportunities, and start their own businesses without fear of retaliation.
Comments