NEW YORK, NEW YORK — The Federal Trade Commission (FTC) recently announced it has proposed a rule to ban companies from imposing noncompete clauses on their employees. The agency said that noncompetes put workers at a serious disadvantage and repealing these restrictions would increase the employees’ earnings by almost $300 billion a year.
Attorney Steven Mitchell Sack, “The Employee’s Lawyer®,” author of his latest book “FIRED! Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” and host of the podcast “Know Your Job Rights with Attorney Steven Sack,” says the FTC’s proposed rule will embolden workers’ rights and provide them with better job opportunities in the future.
The FTC will soon be taking public comments on the proposed rule, which states that noncompete clauses result in unfair competition, in violation of Section 5 of the FTC Act. The agency further states that adding these clauses into employees’ agreements hinders economic development and entrepreneurship by preventing new companies from hiring workers from neighboring employers.
Mr. Sack has noted that this proposal is another example of the federal government continuing to support workers’ rights. “There is no reason why an employer should determine where an employee can and cannot work once they leave their job,” he says. “The FTC proposal will give workers the freedom to work wherever they want and make as much money as they want. I urge those who plan to submit a public comment to show their support for this rule.”