On January 4, the United States Federal Trade Commission (FTC) issued complaints against three employers alleging that they unlawfully imposed non-competition restrictions on employees, including low-wage workers, that barred the employees from seeking or accepting post-termination employment with a competing business. The complaints allege that the employers’ requirement that employees enter into these non-competition agreements constitutes an unfair method of competition and a violation of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, which prohibits unfair or deceptive acts or practices in or affecting commerce.

While this action was newsworthy on its own, the following day, the FTC dropped a bombshell, announcing a new rule that “would ban employers from imposing noncompetes on their workers,” which could, according to the agency, “increase wages by $300 billion per year and expand career opportunities for about 30 million Americans.”

The proposed rule, which will be open for public comment for 60 days, is premised on the FTC’s findings that noncompetition agreements are unfair methods of competition. According to FTC Chair Lina Khan, noncompetition agreements “block workers from freely switching jobs, depriving them of high wages and better wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand.” Chair Khan explained her position that “[b]y ending this practice, the FTC’s proposed rule would...

Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMioQFodHRwczovL3d3dy5lbXBsb3ltZ...