FTC takes aim at non-compete agreements in US workforce


Federal Trade Commission chair Lina Khan announced that the FTC is asking the public to comment on a newly proposed rule that would effectively ban noncompete clauses from employment agreements. A noncompete clause is a provision that is often included in employment contracts that restricts an employee from competing with the employer after their employment ends. Noncompete clauses can be written to prohibit an employee from working for a competing company, starting their own competing business, or engaging in activities that might be considered competitive with the employer.

Noncompete clauses are typically used by employers to protect their businesses from competition from former employees, who may have access to valuable trade secrets, customer lists, or other confidential information that could be used to their advantage in a new job. These clauses can be particularly useful for employers in industries where there is a high risk of employees leaving to work for a competitor or to start their own competing business.

However, while noncompete clauses can be useful for protecting an employer's interests, they can also be controversial, as they can limit an employee's ability to work in their chosen field after their employment ends. Some states already have laws that limit the use of noncompete clauses, or that place certain restrictions on their enforceability.

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