The Federal Trade Commission said it is proposing a rule to ban employers from imposing noncompete agreements on workers and to rescind all existing noncompete agreements
The FTC’s reasoning: Such agreements, which affect millions of rank-and-file employees and independent contractors across industries, in addition to business executives, have suppressed competition, wages and entrepreneurship.
So, SURPRISE, employers are using noncompete agreements to cut that source of worker power off at [the] knees,” the organization said in a statement. Still, the proposal’s broad parameters, if finalized, are likely to be challenged in court. “As written, this could apply to the janitor and the CEO alike,” said employment attorney Ashley Herd, founder of ManagerMethod.com and a former human resources executive.
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